Punjab flood aid likely to fall short of farmers’ losses

Chandigarh: As floodwaters recede across Punjab, farmers in affected districts are grappling with a double whammy: complete loss of their kharif (summer-sown) crops and the inability to plant the upcoming rabi (winter-sown) crops. A new analysis reveals the state govt's announced compensation of Rs 20,000 per acre may be insufficient to cover the losses.According to figures from the Commission for Agricultural Costs and Prices (CACP), an advisory body, the projected cost of production (CoP) for key kharif crops far exceeds the promised aid. The commission's data shows that for paddy, the state's largest summer crop, the loss per acre is estimated at Rs 27,830, assuming total crop damage. The shortfall is even greater for cotton, where per-acre losses are projected at approximately Rs 30,219. For maize, another major crop, the projected loss stands at Rs 24,455 per acre. These figures are based on the commission's A2+FL (actual paid-out cost plus imputed value of family labour) calculations. Speaking about losses suffered by the farmers, Punjab's former chief commissioner of agriculture Balwinder Singh Sidhu, who also served as the director of the state's agriculture and farmers welfare department, said, "It is hard for the farmers to cope up with the losses. A sustained and long rehabilitation programme is needed to help the disaster-hit farmers of Punjab stand back on their feet." Pointing out the grim situation, Kuldeep Singh Sangra, a farmer from Sangra village in the Sultanpur Lodhi subdivision of the Kapurthala district, said, "Right now, we are still battling with the floodwaters, so the next crop is least on our mind. We had floods in 2023 in our area and spent the next year clearing the fields of sand. Now, again we are facing the same situation. I don't think we will be able to sow the crop in the given circumstances." For calculating the CoP, the commission takes into consideration the A2 (actual paid-out cost), A2+FL (actual paid-out cost plus imputed value of family labour) and C2 (comprehensive cost including rental value of own land (net of land revenue and interest on the value of own fixed capital assets (excluding land)) costs. The commission takes the state-wise actual cost estimates to project the CoP for each crop. It recommends the minimum support price (MSP) of the crops at about 150% of the A2+FL costs to the Centre. According to the CACP figures, the A2+FL CoP for paddy (biggest kharif crop of the state) in Punjab for the kharif marketing season (KMS) 2025-26 is Rs 967 per quintal while the projected yield is 71.1 quintals per hectare or 28.78 quintals per acre (1 hectare = 2.47 acres). Assuming the paddy crop suffered total damage in the flood-hit areas, the affected farmers of Punjab have incurred a loss of Rs 27,830 per acre over A2+FL CoP. The MSP for common and Grade A varieties of paddy for the KMS 2025-26 is Rs 2,369 per quintal and Rs 2,389, respectively. For cotton (the second biggest kharif crop of Punjab), the A2+FL CoP in Punjab for KMS 2025-26 is 4,039 per quintal and projected yield is 18.48 quintal per hectare (7.48 quintals per acre). The per acre loss over A2+FL CoP, considering total damage to cotton crop, is about Rs 30,219. The MSP for long and medium staple varieties of cotton for the KMS 2025-26 is Rs 7,710 per quintal and Rs 8,110 per quintal, respectively. Similarly for maize, the A2+FL cost in Punjab for the 2025-26 KMS is Rs 1,718 per quintal while the projected yield is 35.16 quintals per hectare (14.23 quintals per acre). If the entire maize crop of a Punjab farmer has been destroyed in the floods, the projected loss over A2+FL CoP is Rs 24,455.41 per acre. The support price for maize for the KMS 2025-26 is Rs 2,400 per quintal.