Agrarian Distress and Groundwater Depletion: The Socio-Economic Crisis in Punjab

The agricultural landscape of Punjab, once the cradle of the Green Revolution, is currently facing a severe environmental and socio-economic crisis. Recent data indicates that approximately 76.47% of the state's groundwater blocks are classified as 'over-exploited.' This alarming trend is primarily attributed to the persistent cultivation of water-intensive crops, such as paddy, which are incentivized by existing procurement policies and Minimum Support Price (MSP) structures. The environmental degradation caused by the depletion of the water table has direct consequences for the state's social fabric. As groundwater levels recede, the cost of extraction increases significantly. Small and marginal farmers, who lack the capital to invest in deeper borewells or advanced irrigation technology, are disproportionately affected. This creates a 'capital-intensive trap' where only wealthy farmers can afford to sustain production, while smaller landholders face mounting debt and potential displacement. Consequently, the environmental crisis is effectively widening the socio-economic divide, transforming a resource management issue into a challenge for inclusive growth.