The Punjab Agrarian Crisis

Abstract

Punjab’s farming economy, once known for its success after the Green Revolution, is now facing a deep and long-term crisis. This paper looks into how economic pressures and environmental decline have come together to create serious stress in the state’s agriculture. Using secondary data from government reports, research studies, and recent fiscal documents (2024–2025), it examines the deeper causes behind the declining viability of farming in the state. The analysis shows that more than half of the state’s agricultural households are in debt, and the situation is far worse among marginal farmers, where nearly 84 percent are indebted. The continued dependence on the rice–wheat cycle, which once ensured national food security, has over time damaged the soil and led to fast depletion of underground water. The study suggests that Punjab’s agrarian recovery will require a mix of crop diversification, ecological restoration, and reform in rural credit systems to make farming sustainable again.