Punjab with just 1.53 per cent of the geographical area of the country accounted for about 40-45 per cent of wheat and about 25-30 per cent of rice procured for the central pool of food grains during the last 50years or so. The State agriculture, which was growing fast earlier, has now reached a sort of plateau in terms of productivity and production. In the wake declining land - man ratio, it is not able to generate gainful employment and sufficient income for the growing population. There is almost stagnation in the net farm income. The farming alone is not able to generate sufficient income for small and marginal farmers. Due to economic distress, 6926 farmers and agricultural labourers had committed suicides between 2000 and 2010. At present, the farm indebtedness is to the extent of about Rs.80,000, which work out at Rs.7.60 lakh per farming household. Unless the state make rational use of its irrigation resources, it would be difficult to maintain even the present type of cropping pattern in the long run. In the overall interest of rural economy, the employment opportunities in the non-farm sector may be created for the unemployed/ under-employed youth. Future of the state is in the hands of present young generation.