Punjab Announces ₹20,000 Per Acre Compensation for Flood-Affected Farmers

8 September, 2025

The Punjab government has announced a relief package for farmers affected by the state's worst floods in four decades. The measures include a compensation of ₹20,000 per acre for crop and field damage. Additionally, under a new policy, farmers can extract and sell sand and silt deposited on their land until November 15 without a permit to help clear their fields for the upcoming Rabi season. Other relief includes financial aid for loss of life and a six-month moratorium on bank loan installments.

Unpacked:

How extensive is the damage caused by the floods in Punjab?

The floods have affected around 2,000 villages and damaged crops across approximately 4.3 lakh (430,000) acres, impacting about 400,000 people. Many fields are covered with sand and silt, and there have been significant losses to crops, livestock, and homes, making this the worst flood in Punjab in four decades.

How are different farmer groups and unions reacting to the relief package?

While some welcomed the ₹20,000 per acre as the highest-ever compensation in Punjab, major unions like the Samyukta Kisan Morcha and Kisan Mazdoor Morcha criticized it as insufficient, demanding much higher compensation—up to ₹1 lakh per acre—and greater clarity on eligibility and caps on relief per farmer.

What are the main challenges farmers face in restoring their land after the floods?

Farmers must clear large quantities of sand and silt deposited by floodwaters to make their land suitable for the upcoming Rabi season. There’s also concern about damage to infrastructure like tubewells and uncertainty about the adequacy of compensation and support for all affected aspects, including livestock and homes.

What additional relief measures, besides crop compensation, has the Punjab government announced?

The government is providing ₹4 lakh ex gratia to families of flood victims, financial aid for destroyed homes, a six-month loan moratorium with no interest for affected farmers, assistance for livestock owners, and health measures such as vaccination drives and fogging to prevent disease outbreaks.