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Punjab is a small state, occupying 1.54 per cent of the geographical area of the country but having a major share in foodgrains production especially wheat and paddy towards the central pool. The growth of agriculture sector has been closely associated with the well known ‘Green Revolution’ and adoptions of high varieties of seeds and growth in agriinfrastructure in the state of Punjab. Agriculture infrastructure affects the basic economic functions of production, marketing and consumption in a variety of ways. This paper investigates the relationship between institutional agri-infrastructure and volume of agriculture production through coefficient of correlation analysis. The analysis revels that financial institutions have played a dominating role in increasing the volume of agriculture followed by no. of regulated markets and total storage capacity with Govt. agencies during 1990-91 to 2011-12. The study suggested that there is significant need for improving the rural infrastructure for the development of the farming community. The study also recommended that a suitable policy for agriinfrastructure is extremely essential for the agricultural development in the state of Punjab.

Role of Infrastructure in the Growth of Agriculture in Punjab