Punjab is one of the smallest states but contributes as much as 14% of the national foodgrain output. As a consequence of fast growth in food production, the state is now facing serious challenges of declining underground water level, deteriorating soil health and increasing use of pesticides. The increase in production did solve the food problem of the country, saved it from spending heavily on import of foodgrains but disposal and post harvest handling of huge stocks became a serious controversialproblem in the economy. As a result of this, profitability in state agriculture is continuously falling. Environmental problems are getting serious. Further, social problems created by high influx of labour from other states are also taking a serious turn.
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