How Punjab and Haryana may de-risk Indian economy

 During the current southwest monsoon season (June-September), the country has so far received rainfall 27.7% below the long-period average for June 1-25.

Punjab and Haryana have been India’s breadbasket and lynchpins of its food security, especially post the Green Revolution.

Over the last two decades though, the two states’ combined share in total wheat procurement for the Central foodgrain pool has fallen from 90% or more, to hardly 70%. It’s been more, from 43-44% to 28-29%, for rice (chart).

The diversification of procurement – traditionally concentrated in Punjab and Haryana for wheat and in the two, plus Andhra Pradesh (AP) and Tamil Nadu, for rice – has come on the back of the Green Revolution (the cultivation of high-yielding semi-dwarf varieties) spreading to more states and their governments also establishing infrastructure for purchase of grain at minimum support prices (MSP) from farmers.

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