Direct delivery of electricity subsidy to farmers in Punjab: will it help conserve groundwater?

Kumar, M. Dinesh; Bassi, Nitin; Verma, Mahendra Singh

doi:10.1080/07900627.2021.1899900

Cited by 9 publications

(3 citation statements)

References 12 publications

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“…Studies in literature suggest several ways to reduce groundwater depletion in the state such as fixing energy/water quota coupled with volumetric pricing of electricity, shifting of cropping pattern to less water‐intensive crops (Kumar et al., 2021), and extending canal network to unserved areas (Kumar & Perry, 2019). Several groundwater management schemes could result in same aggregate profits but could have different welfare distributional effects on individual farmers, and thus various users may find different schemes attractive.…”

Section: Discussionmentioning

confidence: 99%

Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India

Gupta

2023

Agricultural Economics

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This paper examines the impact of a change in the policy regime from flat rate to free farm electricity pricing, introduced in Punjab, India in February 1997 using a difference-in-differences framework. Based on village-level data from the second and the third rounds of the Minor Irrigation Census, the study finds a differential increase in the number of electric-operated tubewells and horsepower load of pumps in Punjab as compared to an agriculturally-similar and neighboring state, Haryana, which is taken as the control group. Through these channels, the study finds that the average groundwater depth increased by 1.9 meters more in Punjab as compared to Haryana, which is 22 percent of the baseline average groundwater depth in Punjab. Nationally-representative well-level data on groundwater depths from the Central Ground Water Board shows impact heterogeneity with sharper effect on groundwater depth for wells that are lying closer to the cut-off of about 10 meters where a technological shift from centrifugal to submersible pumps is required to maintain access to groundwater pumping.

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Section: Discussionmentioning

confidence: 99%

Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India

Gupta

2023

Agricultural Economics

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“…Due to this, farmers are forced to cultivate more water-loving crops like paddy, sugarcane, banana and vegetables. Though groundwater exploitation (defined as groundwater withdrawal to its annual recharge) has been increasing since the introduction of green revolution technology, the cheaper electricity pricing policies followed by the successive state governments reportedly encouraged the over-exploitation of groundwater (Kumar, 2005;Palanisami et al, 2008;Kondepati, 2011;Gill and Nehra, 2018;Dangar et al, 2021;Kumar et al, 2022). Studies show that the heavily subsidised flat-rate and free electricity given to agricultural purposes often encourages the farmers to exploit groundwater recklessly, as the marginal cost of lifting water from the wells under a flat-rate tariff is close to zero (Narayanamoorthy, 1994 andKumar et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Determinants of Groundwater Exploitation Among Indian Districts

Devi,

Narayanamoorthy,

Sujitha

2023

IJAE

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The annual groundwater draft of India is the largest in the world as of 2020. The agricultural sector alone consumes about 89 per cent of groundwater draft. Besides providing assured irrigation, groundwater has significantly helped increase the cropping intensity, productivity and production of crops. But, due to the continuous exploitation of groundwater, not only has the water level been depleted but the cost of water has increased. An attempt is made in this study to find out the determinants of groundwater exploitation by taking data from 235 Indian districts drawn from different states covering two-time periods namely 1990-93 and 2017-20. The study indicated that the number of districts exploiting groundwater more than 50 per cent to its annual recharge has increased from 21 per cent in 1990-93 to 69 per cent in 2017-20. The regression analysis shows that the average size of holding is the most important factor in positively influencing groundwater exploitation, whereas the percentage of surface irrigated area to net irrigated area negatively and significantly influences the groundwater exploitation. The analysis also suggests that the impact of these two variables in determining groundwater exploitation have increased significantly over time.

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“…While most Indian states failed to even make a start, Gujarat banned issuing new unmetered connections while subsidising metered supply. Kumar et al (2021) have argued that farmer opposition to metering in India is a red herring but even 90 percent subsidy on metered supply in Gujarat (US $ 8.3/MWh for normal and US $ 11.1 /MWh for on-demand connections) failed to lure unmetered farmers to meter tubewells. A global survey by Molle and Closas (2021) shows that metering groundwater wells is resisted and frustrated by farmers not only in India but also in US, Iran, Australia, Greece, France, Italy, Syria, Jordan, Mexico, Chile and other countries for much the same reasons as in India.…”

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confidence: 99%

Solar Pumps and Water-Energy Nexus in Gujarat, India: First Assessment of the World’s Largest Pilot on Grid-connected Solar Irrigation Pumps

Shah

Rai

2021

Preprint

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The epicentre of Gujarat’s perverse nexus between electricity subsidy and groundwater depletion lies in its legacy of 485,000 unmetered tubewell owners who have fiercely resisted metering for 20 years. These comprise 40 percent of Gujarat’s irrigation connections but account for 49 percent of agricultural load, 71 percent of energy use in groundwater abstraction and 90 percent of farm power subsidies. Suryashakti Kisan Yojana (SKY), a large, state-wide pilot project which solarised and net-metered 4215 tubewells and began paying farmers for evacuating surplus solar energy, has been enthusiastically embraced by unmetered and metered farmers alike. SKY promises politically acceptable resolution of a wicked energy-water conundrum that afflicts much of India and west Asia. Mainstreaming SKY can significantly reduce groundwater overdraft, GHG emissions and subsidy burden. It will increase farm incomes while radically improving energy-water accounting and management. Gujarat government should invest in compulsory, free-of-cost solarisation of tubewells. We show that doing so is profitable for government and beneficial for farmers, climate and environment.

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Direct delivery of electricity subsidy to farmers in Punjab: will it help conserve groundwater?

Cited by 9 publications

References 12 publications

Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India

Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India

Exploring the Determinants of Groundwater Exploitation Among Indian Districts

Solar Pumps and Water-Energy Nexus in Gujarat, India: First Assessment of the World’s Largest Pilot on Grid-connected Solar Irrigation Pumps

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