Even as Punjab’s latest budget speaks of crop diversification and sustainable agriculture, the financial allocations reveal a familiar pattern — the state’s farm economy remains firmly anchored in the wheat–paddy cycle.While the budget has earmarked Rs 15 crore to encourage a shift from paddy to kharif maize, the government has also allocated Rs 7,715 crore for free and subsidised electricity to farmers. The subsidised electricity primarily supports over 14 lakh tubewell irrigation during the paddy sowing season, which begins in mid-June and continues until harvest in early October, is one of the largest agricultural expenditures in the state budget.While presenting the budget, Finance Minister Harpal Singh Cheema also highlighted Punjab’s contribution to India’s food security system. “Though Punjab accounts for nearly 3 percent of the country’s total cultivated area but is contributing nearly 40 percent of wheat and 31 percent of rice to the central grain pool,” Cheema said.While the statement underlines Punjab’s role in feeding the country, it also reflects the structural reality of the state’s agriculture — heavy dependence on two crops that have dominated the landscape for decades.He added that a pilot project encouraging a shift from paddy to kharif maize was implemented in 2025-26 in six districts — Pathankot, Gurdaspur, Bathinda, Sangrur, Jalandhar and Kapurthala with an incentive of Rs 17,500 per hectare. “An allocation of Rs 15 crore has been earmarked for this purpose in this budget,” the finance minister said.However, when translated into acreage, the numbers tell a different story.At the announced incentive rate, Rs 15 crore would support diversification of roughly 8,572 hectares — around 21,172 acres — from paddy to maize.Story continues below this adThat figure appears marginal against the backdrop of Punjab’s vast paddy cultivation. Every year, over 32 lakh hectares of land in the state are planted with paddy during the kharif season, accounting for nearly 89 per cent of the agricultural cropped area during that period.In simple terms, the maize incentive programme touches less than one percent of the paddy area, raising questions about how far the policy can realistically push diversification.The Rs 7,715 crore for free and subsidised electricity to farmers to supports over 14 lakh tubewell irrigation for paddy also shows that paddy still rules the fields.Agricultural economists say such subsidies have historically encouraged water-intensive crops like rice. “When electricity for pumping groundwater is free and procurement is assured, farmers have little incentive to shift to alternative crops,” said an economist associated with PAU.DSR incentive supports paddyStory continues below this adFarmers adopting Direct Seeded Rice (DSR), a technique that reduces labour requirements and saves around 15 to 19 per cent water compared to traditional transplantation, have also been given Rs 1,500 per acre as assistance.During FY 2025–26, the government spent Rs 35 crore on the scheme, and Rs 40 crore has been earmarked for FY 2026–27.While DSR is promoted as a water-saving technology, critics point out that it still supports rice cultivation rather than encouraging farmers to move away from paddy altogether.Cotton’s declineCheema said, “During FY 2025–26, a 33 per cent subsidy on PAU recommended Bt cotton hybrid seeds was extended to support cotton farmers, benefitting over 52,000 cultivators through direct transfer of Rs 11 crore which resulted in an increase in cotton acreage by 19 per cent in the current season.” However, cotton cultivation in Punjab has shrunk dramatically over the years.Story continues below this adFrom nearly seven to eight lakh hectares under cotton in the past, today, the area has fallen to around 1.15 lakh hectares in 2025–26. Against this backdrop, the Rs 11-crore subsidy appears modest for reviving a crop that once served as a major alternative to paddy in the state.Gurpreet Singh, a farmer from Bathinda who shifted from cotton to paddy, said, “Paddy has assured procurement and timely payments. If we grow maize or cotton, we are not sure whether we will get a good price.”An Agricultural officer added that the government encourages diversification but the system still supports paddy. “Electricity, procurement and infrastructure are all designed for wheat and rice,” he said.A policy contradictionA senior officer in the Punjab agriculture department said that on one hand, the state remains a cornerstone of India’s food security system, supplying large quantities of wheat and rice to the central pool managed by the Food Corporation of India, on the other, Punjab talks about diversification to make agriculture environmentally sustainable.Story continues below this adJagmohan Singh, General Secretary of BKU (Dakaunda), said, “While the latest budget signals intent to promote diversification, the scale of financial support suggests that the shift is still tentative. Until incentives, procurement policies and market infrastructure begin to favour alternative crops with the same certainty that wheat and paddy enjoy, Punjab’s long-discussed transition away from the rice economy may remain more of a policy aspiration than an agricultural reality.”