Punjab: 21,000 hectares to be diversified from paddy to Kharif maize to promote ethanol production

Punjab finance minister Harpal Singh Cheema on Wednesday presented a ₹2.36-lakh crore budget for the 2025-26 financial year.

An allocation of ₹14,524 crore has been earmarked for the agriculture and allied sectors in next financial year which is 5% higher than last year.

To incentivise crop diversification, a new scheme covering three districts of Bathinda, Kapurthala and Gurdaspur is being introduced for kharif maize crop. A total of about 21,000 hectares will be diversified from paddy to kharif maize to encourage the production of ethanol to achieve the target of 20% blending of ethanol by year 2025 set by the Government of India.

The farmers will get a subsidy of ₹17,500 per hectare for switching to kharif maize cultivation and will provide benefit to about 30,000 farmers. An amount of ₹115 crore has been earmarked for this purpose and for other initiatives aimed at crop diversification.

Cheema allocated ₹9,992 crore as power subsidy for 14.5 lakh agriculture tubewells.

He earmarked ₹500 crore to support farmers, cooperatives, and gram panchayats for crop-residue management, to check stubble burning, specifically during paddy harvest.

An allocation of ₹149 crore has been made in FY 2025-26 under the Krishonnati Yojana to support critical activities, including agriculture extension, enhancing food security, promoting horticulture, seed development, boosting edible oil production, and digital agriculture.

An allocation of ₹250 crore has been made for sugarcane purchase and ₹137 crore has been earmarked to promote horticulture in Punjab.

This article has been republished from The Chini Mandi.