The government will also issue licenses for supplying fertilizers and agro-chemicals to qualified people to ensure supply of quality inputs among growers.
"Seed Control order has been amended by the Centre on our request. With this, now the states have been empowered to check Bt Cotton seeds. We were not empowered till last year," Punjab Additional Chief Secretary Suresh Kumar said here today.
"Seeds coming from outside will now be checked by the state agriculture department officials or PAU experts at their lab. We will be more conscious about seed supply this time," he said.
He further said that the government would also now issue licenses for fertilizers to graduates in agriculture sciences.
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"The State Department of Agriculture has decided to review all previous licenses to weed out undeserving licensees," said Kumar.
Punjab has issued 12,000 licenses for retail, 370 for wholesale and 38 for manufacturing units.
During the last nine months of 2015-16, the Directorate of Agriculture has taken 2,204 samples of fertilizers, of which 116 samples failed quality tests.
As many 98 licences have been cancelled and FIRs have been registered against 33 dealers, officials said.
Punjab government has also decided to form a law on regulating informal debt and a Bill in this regard will be presented in Budget session of the assembly.
"The state government is considering to enact a legislation to regulate non-institutional financing to the farmers," said Kumar.
The state government has also formed district level committees for the promotion of institutional financing so as to ensure farmers switch over from commission agents to banks.
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Kumar added that the Centre has permitted producing ethanol from maize which will be further blended with fuel.
"Centre has taken a very big decision. It has agreed that ethanol be produced from maize and the blending ratio will be increased from 5 to 10 per cent. We are waiting for the notification. With this move, more ethanol producing units will come up in the state and help in reducing area under paddy," he said.