The Indian Council for Research on International Economic Relations (ICRIER) has recently published a report advocating for crop diversification as a solution to the environmental and economic challenges posed by rice farming. Led by economist Ashok Gulati, the report recommends providing ₹35,000 per hectare to farmers who transition from rice to pulses, maize, coarse cereals, and oilseeds.
Rationale Behind the Recommendation
The recommendation arises from the pressing issues related to rice cultivation in regions like Punjab and Haryana. Rice farming demands significant water resources, often leading to overextraction from groundwater reserves. This practice has contributed to a severe decline in groundwater levels, with several districts now classified as dark zones. Additionally, the intensive use of fertilizers in rice farming degrades soil health and contributes to greenhouse gas emissions, with each hectare of rice emitting about five tons of CO2.
In contrast, crops such as pulses, maize, and coarse cereals require less water and have lower environmental footprints. Pulses, for example, are natural carbon sinks and reduce dependency on synthetic fertilizers. By promoting these crops, the report aims to alleviate the strain on water resources and improve soil health.
The Proposed Incentive Formula
ICRIER’s report outlines a financial incentive of ₹35,000 per hectare to encourage farmers to adopt these alternative crops. The proposal suggests a cost-sharing model where both the central and state governments contribute equally. For instance, Haryana’s existing scheme under the “Meri Paani Meri Virasat” initiative provides ₹17,500 per hectare for crop diversification. The report recommends that the central government match this amount, effectively doubling the incentive to ₹35,000 per hectare.
Feasibility and Financial Implications
The feasibility of this proposal hinges on whether the central government can align its budget and policies to support such incentives. The report argues that the cost of this subsidy could be offset by savings on electricity, canal water, and fertilizer subsidies, which are currently subsidized by the government. These savings could be redirected to support farmers transitioning to more sustainable crops.
The potential benefits include preserving the fertility of India’s most productive agricultural regions and preventing desertification. If implemented effectively, this incentive could also create new markets for pulses and maize, as evidenced by the rising demand for ethanol derived from maize.
The ICRIER report presents a compelling case for crop diversification by suggesting substantial financial incentives for farmers. While the proposal is ambitious, it aligns with broader environmental and economic goals. If realized, it could transform Indian agriculture by making it more sustainable and less reliant on water-intensive crops like rice.
Error
