Punjab’s government has launched the Farmers’ Delight Crop Diversification Scheme, offering incentives to shift from water-intensive paddy to crops like maize and cotton. With Rs 115 crore allocated, the scheme aims to enhance farmers’ income, conserve water, and promote sustainable agriculture. A new chilli processing plant in Abohar will further support diversification efforts.
Punjab’s Bold Step Toward Sustainable Agriculture
In a significant move to transform Punjab’s agricultural landscape, the state government has rolled out the Farmers’ Delight Crop Diversification Scheme, targeting the reduction of water-guzzling paddy cultivation while boosting farmers’ incomes through alternative crops. Announced in March 2025, the scheme has allocated Rs 115 crore to promote cash crops, with a primary focus on summer maize and cotton, particularly in water-stressed regions like Bathinda and Muktsar.
The initiative includes a pilot project offering farmers Rs 17,500 per hectare to transition from paddy to kharif maize in six districts: Jalandhar, Kapurthala, Bathinda, Sangrur, Pathankot, and Gurdaspur. This financial incentive, part of the centrally sponsored Crop Diversification Programme (CDP), aims to divert approximately 12,000 hectares of paddy fields to maize, addressing the critical issue of groundwater depletion in Punjab, where paddy cultivation has long strained water resources.
Punjab Chief Minister Bhagwant Mann, in a recent address to the Niti Aayog, emphasized the need for central support to expand this initiative, highlighting maize’s potential as a less water-intensive crop with growing demand in ethanol production. Experts, however, have criticized the delayed launch, arguing that earlier implementation could have yielded better results. “Crop diversification isn’t new to Punjab, but the lack of assured markets and MSP for alternative crops has kept farmers tethered to paddy,” said a senior scientist from Punjab Agricultural University (PAU).
To complement the scheme, the Punjab government is set to commission a Rs 9.5 crore chilli processing plant in Abohar by September 2025, managed by the Punjab Agri Export Corporation (PAGREXCO). With a capacity of five tons per hour, the facility will bolster chilli cultivation, a high-yield alternative crop, and enhance export potential for red chilli paste. “Chilli farming is gaining traction, and this plant will ensure farmers get better prices through direct procurement,” said State Food Processing Minister Gurmeet Singh Khudian.
The scheme also aligns with broader agricultural modernization efforts, including the Chief Minister Punjab Green Tractors Scheme 2025, which will distribute 20,000 subsidized tractors to farmers to improve efficiency and reduce costs. An online registration portal (gts.punjab.gov.pk) has been launched to ensure transparent distribution, with a helpline (0800-17000) for farmer queries.
Despite these efforts, challenges remain. Experts note that free electricity for irrigation pumps continues to incentivize paddy cultivation, undermining diversification goals. “If free power is phased out, farmers will naturally shift to crops like maize,” argued a PAU researcher. Additionally, the state is pushing for market reforms, including assured Minimum Support Prices (MSP) for alternative crops, to make diversification economically viable.
The Farmers’ Delight scheme also promotes organic farming and water-saving techniques, with Union Agriculture Minister Shivraj Singh Chouhan urging Punjab farmers to adopt practices like direct seeding of rice and mushroom farming. During a visit to Patiala in June 2025 under the Centre’s Viksit Krishi Sankalp Abhiyan, Chouhan emphasized the profitability of diversified crops like fruits and vegetables, which consume less water while offering higher returns.
As Punjab navigates this transition, the success of the Farmers’ Delight scheme hinges on robust market linkages, timely incentives, and sustained policy support. With the state’s agricultural sector at a crossroads, this initiative could pave the way for a more sustainable and prosperous future for Punjab’s farmers.
Disclaimer: This article is based on recent news reports, government announcements, and expert insights from sources like The Indian Express, Times of India, and Yes Punjab News. Information is accurate as of July 3, 2025, and subject to change as new developments emerge.