Prime Minister Narendra Modi’s announcement of a ₹1,600 crore flood relief package for Punjab during his visit to Gurdaspur on Tuesday has sparked sharp reactions from farmers, who have questioned its adequacy and purpose. Farmers’ unions, which have expressed apprehensions about the funds benefiting the farmers, have sought clarity on the fund disbursal.
“A day before the PM’s visit, the AAP government announced ₹20,000 per acre for affected farmers, only to seek political mileage, but nothing for farm labourers. Now the PM talks of ₹1,600 crore. But is it for agriculture, infrastructure, or housing? Will it be over and above the state’s package, or merged into it?” asked Sarwan Singh Pandher, coordinator of Kisan Mazdoor Morcha (KMM).
They also questioned the Punjab government led by the Aam Aadmi Party for not spending the ₹12,000 crore disaster management reserve fund — repeatedly cited by the Centre — for flood-hit Punjabis. Some farmers’ unions have demanded that the Central Government directly transfer the money into the accounts of farmers.
“Where is the ₹12,000 crore disaster management fund that the PM claims is with Punjab? Why is the state not spending it?” asked Pandher, who said the announcement only deepened confusion. “I have been touring flood-affected areas, and by and large, it is the people themselves who are helping,” he added.
He stressed that farmers had sought ₹70,000 per acre as compensation, whereas dividing the Central package over nearly five lakh acres would “work out to less than ₹10,000 per acre — if it even reaches us.”
Abohar-based farmer Sukhjinder Singh Rajan demanded direct benefit transfer of the funds. “Whatever relief the Centre wants to give, it must go directly into farmers’ bank accounts. Otherwise, whether it is ₹1,600 crore or ₹60 crore, it makes no difference,” he said. He pointed out that there is no policy to compensate the orchard owners by any government; they need to think about them as well, as they contribute to diversification.
Raminder Singh Patiala, general secretary of Kirti Kisan Union, termed the announcement “just peanuts”.
“Samyukta Kisan Morcha has demanded ₹50,000 crore for Punjab, and ₹1,600 crore is a cruel joke. There are already too many riders on the use of disaster relief funds, which delays disbursal. These must be eased if the Centre is serious,” he argued.
Narain Dutt pointed out that unless there is clarity on fund allocation, the farmers will once again be left in limbo.
“There’s no clarity for landless and farm labourers as to how they will be compensated. Many shopkeepers also suffered damage. Hence, policy needs to be for one and all,” Dutt stated.
According to Jagmohan Singh Patiala, general secretary of Bharatiya Kisan Union, Dakaunda, the package amounted to only “₹80 lakh per village” for 2,000 flood-hit villages. “What relief can that bring? In 2023, the Punjab government gave just ₹6,800 per acre compensation to farmers — the lowest in three decades. The state must come clean on how it spent the so-called ₹12,000 crore reserve. Otherwise, we will blame them equally for these man-made floods,” he said.
With farmers still recovering from losses to crops, homes, and livelihoods, farmers say their core demands remain: transparency, adequacy, and direct delivery of relief funds. “Until then, the ₹1,600 crore package is being seen less as a solution and more as another political headline,” said Patiala.
PM Modi on Tuesday conducted an aerial survey of the deluge-ravaged belts in Punjab, which has been battling one of its worst floods. He then landed in Gurdaspur, where he held a high-level meeting and met several flood victims.
In Gurdaspur, during his meeting with top Punjab functionaries and public representatives – including Governor Gulab Chand Kataria, state Agriculture Minister Gurmeet Singh Khuddian and Union Minister Ravneet Singh Bittu – Modi assessed the damage and the ongoing relief and rehabilitation operation. He announced a financial assistance of Rs 1,600 crore for Punjab, in addition to Rs 12,000 crore already available with the state for disaster management.