Punjab is predominantly  an Agricultural  state. According to 1999-2000 quick estimates agriculture contributed 27.58% of States Gross Income at current prices and 27.39% at constant prices. Manufacturing with 13.84% share comes second and livestock comes at number three with 13.27% share in State Gross Domestic Product. The primary sector which includes primary production activity like Agriculture, Livestock, Forestry & Logging, Fishing and Mining & Quarrying contributes nearly half (41.32%) to states economy.

The following graph shows the performance of primary sector :

  
The secondary sector which includes Manufacturing, Electricity, Gas & Water supply and Construction share nearly one fourth (23.97%)  and tertiary sector which includes Trade, Hotels & Restaurant,Transport, Banking, Public Administration  and other services pursuits account for the remaining one third (34.71%) of Punjab Gross Domestic Product as per 1999-2000 quick estimate.

                                                                  Source: Statistical Abstract of Punjab 1995 and 2000

The state is the chief granary of India contributing 67.9 Lakh tons (42.1%) of rice and 78.3 Lakh metric tons of wheat (55.4%) to the Central pool in 1999-2000.In the same year it produced 130.74 Lakh metric tons of paddy out of which 109.77 Lakh metric tons procured. Production of the wheat during that year was 159.10 Lakh metric tons of which 79.39 Lakh metric tons were procured.

                                                             Source :Deptt. of Agriculture Punjab 2000-2001  

 The large scale development of agriculture in Punjab was  made possible by the successful  introduction and adoption of Green Revolution . The progressive, hard working    and enterprising Punjabi farmers were the  first in the whole country who readily accepted and introduced high yielding hybrid varieties of wheat and rice, latest  method of cultivation, mechanization, and other farm inputs such as fertilizers, insecticides and pesticides irrigation etc. in agriculture in the sixties. The success was also made possible by the various power and irrigation projects such as Bhakra-Nangal Project, consolidation of land holdings, and extension of irrigation, especially by subsidized and loan-based tubewells. A proper system of agricultural credit and extension services was also developed in the state. As a result vast tracts of land were put under agriculture in the state.


About 86% area of total geographical area of  Punjab is under agriculture vis-a-vis  only 43% area of the country as whole . The  total cropped area has increased from 4732 thousand ha. to 7847 thousand ha. from 1961 to 2000. This is coupled with multiple cropping pattern as reflected by cropping intensity which has recorded an upward trend from 133.09% in 1966-67 to 186% in 1997-98. This is a result of increased availability of water due to improved irrigation facilities.

At the same time ,however, this practices does not allow the land to recoup after crop harvest. There has been a distinct change in the cropping  pattern with emphasis on cereal crops . The area under cultivation of  total food grains increased  from 3063 thousand ha. in 1960-61 to 6252 thousand ha. in 1999-00 with a constant increase in  productivity over the years.

                                                           Source : Statistical  Abstract of Punjab –1982 and 2000.

 The state had 476 thousand ha Area and 337 Kg per ha yield of cotton in 1999-2000 as compare to 719 thousand ha Area and 636 Kg per ha yield in 1991-92. Amongst the cereals crops, the area under rice and wheat increased from 227 thousand ha to 2604 thousand ha and 1400 thousand ha to 3388 thousand ha respectively  from  1960-61  to 1999-00, whereas area  and production  of  pulses like gram ,mash moong, arhar  &  masar etc have been constantly decreasing. In the 1960-61 pulses occupied 19% of state's total croped area. In 1999-2000 the area dropped to 0.78% only. Similarly, area under groundnut ( a major legume ) decreased rapidly. Upto seventies groundnut was an important oilseed crop of Punjab. The highest acreage was 1.74 lakh ha recorded  in 1970-71. After 1980-81 both acreage and production started declining rapidly and in 1999-2000 only 5000 mt tons of groundnut was produced from 500 ha of land. Since legumes are a major source of nitrogen enrichment in the soils through  natural means, their reduced cultivation has led to deterioration in soil quality. Further, this has reduced crop diversity  which has also its own impact on the ecosystem .