Abstract

This study details the causes as to how and why Punjab farmers fell into a never ending cycle of debt which started right from the British Era but became graver with time Slowly it turned the state into a graveyard of farmers The reasons for this poor plight of Punjab farmers are many which can be attributed to the various Governments both at the State and the Center peasants themselves and to agricultural economists The loss of resources due to trifurcation of Punjab 1 st November 1966 the uncertain political atmosphere during the period of militancy the absence of democratically elected government for about a decade 3510 days and bypassing of primary agriculture sector during Economic Liberalization period initiated in June 1991 made Punjab an Orphan state The farmers failed to diversify as no right advice was forthcoming from the economics and continued with wheat and rice combination for which there were no takers of their surplus produce after some years Continual increase in the cost of agricultural inputs relative to minimal increase in the MSP of the crops by the Centre the pest attacks whitefly on cotton depleting underground water level in 80 area and excessive use of fertilizers and pesticides reduced the quality of both the soil and water of the state The study also suggests corrective measures to bring the agrarian economy of Punjab back on the track like arresting decline in ground water level by water saving technologies regulating use of fertilizers and pesticides decreasing acreage of wheat and rice and replacing it with less water consuming crops encouraging contract farming creating employment for rural youth liberal enhancement of MRP granting loans on reduced rates giving subsidies on installing tube wells and crop diversification and providing marketing facilities