Vinod Kumar

Chandigarh: While Punjab continues to be a major contributor to India’s agricultural economy—particularly in cereal production—the state is gradually losing its relative share in the national output as faster-growing states like Madhya Pradesh and Telangana catch up. At the same time, neighbouring states such as Haryana and Himachal Pradesh are registering gains by diversifying into horticulture, livestock, and other allied sectors, better aligning with the emerging national trends.

According to the Statistical Report on Value of Output from Agriculture and Allied Sectors (2011–12 to 2023–24), released by the Ministry of Statistics and Programme Implementation (MoSPI), Punjab’s gross value of output (GVO) from cereals in 2023–24 stood at Rs 47.1 thousand crore. This keeps Punjab among the top three cereal-producing states, along with Uttar Pradesh and Madhya Pradesh. However, Punjab’s share in the national cereal GVO declined from 11.97% in 2011–12 to 11.01% in 2023–24, pointing to a phase of relative stagnation.

By contrast, Madhya Pradesh’s cereal GVO surged from Rs 20.9 thousand crore to Rs 47.1 thousand crore over the same period—more than doubling its share and catching up with Punjab.

Haryana, another grain-centric state, posted a cereal GVO of Rs 28.1 thousand crore in 2023–24, reflecting steady output, though without a major increase in its national share.

The data highlights Punjab’s continued dependence on the paddy-wheat cycle. While the state’s agricultural infrastructure remains strong, its horticulture, livestock, and allied sectors are comparatively underdeveloped. Nationally, agriculture is undergoing a structural shift. The share of crops in the total agricultural GVO declined from 62.4% in 2011–12 to 54.1% in 2023–24, while the contribution of the livestock sector grew from 25.6% to 31.2%. The fisheries sector also expanded, with its share rising from 4.2% to 7.0%.

Livestock GVO at the national level nearly doubled, from Rs 4.88 lakh crore in 2011–12 to Rs 9.19 lakh crore in 2023–24. Punjab, however, recorded a slower growth rate in this segment. The state’s livestock GVO rose from Rs 26,660.05 crore in 2011–12 to Rs 37,983.56 crore in 2023–24, an increase of 42.47%—well below the national average of 88%. The livestock GVO includes seven product categories: milk, meat, eggs, wool and hair, dung, silkworm cocoons and honey, and increment in livestock. In Punjab, milk continues to dominate, accounting for 84.52% of the state’s total livestock GVO in 2023–24, up from 82.15% in 2011–12. Meat output rose modestly to Rs 3,871.67 crore in 2023–24 from Rs 2,983.35 crore in 2011–12. Eggs and other products remain marginal in contribution.

In contrast, states like Tamil Nadu, Rajasthan, Uttar Pradesh, Andhra Pradesh, and Maharashtra have diversified their livestock portfolios, making significant gains from poultry, meat, and fisheries.

“Punjab’s agrarian growth model has reached a saturation point,” said Prof Ranjit Singh Ghuman, agricultural economist. “With nearly 80% of the state’s geographical area already under cultivation, there’s no room left to expand outward. The real challenge now is to grow smarter—by shifting away from over-dependence on paddy and wheat and incentivising diversification into high-value crops, livestock, and agro-processing. Without this structural shift, both the ecological and economic sustainability of Punjab’s agriculture remain at serious risk.”

Total of Five States: 160.4 | 226.3
All-India: 336.4 | 427.6
(Gross value of output in Rs 000 crore)

Punjab’s agrarian growth model has reached a saturation point. With nearly 80% of the state’s geographical area already under cultivation, there’s no room left to expand outward.

Prof Ranjit Singh Ghuman | agricultural economist

Published Date: July 7, 2025