Author(s):

Vikrant Dhawan, JM Singh and Kashish

Abstract: The present study was undertaken to examine the impact of minimum support prices on cropping pattern and trends in minimum support prices (MSP) for important crops in Punjab. The data pertaining to area under all the crops and minimum support prices (MSP) of major crops were collected from various secondary sources. The study revealed that the minimum support prices (MSP’s) have made an immense impact on the cropping pattern in the Punjab state as the area under wheat and paddy crops, which was 40.50 and 6.90 per cent of gross cropped area (GCA) in 1970-71, increased to 44.67 and 38.93 per cent in 2016-17. In spite of these increases, the area under pulses, maize, bajra and oilseeds declined drastically, during the same period. Thus, paddy-wheat crop rotation became predominant at the cost of maize, other cereals, oilseeds and pulses in the state. The regression analysis brought out that with one per cent increase in lagged minimum support price (MSP), the area under wheat and paddy crops increased by 0.12 and 0.48 per cent, respectively whereas for cotton crop, with one per cent increase in lagged MSP, the area decreased by 0.06 per cent. This decline in area under cotton crop was due to severe incidence of pests on this crop during the nineties. Lastly, it was inferred that Punjab agriculture has reached at a point of stagnation and there is a need for various Government initiatives such as to ensure farmers by assured prices and marketing of competing crops of paddy and wheat, farmer awareness camps, demonstrations of new farm technologies and input subsidies for other crops which can make a way out for the farmers from paddy-wheat monoculture and this can be helpful in diversification of Punjab agriculture.

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