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Revisiting Groundwater Depletion and its Implications on Farm Economics in Punjab, India


Affiliations
1 ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
2 NITI Aayog, Government of India, New Delhi 110 001, India
3 ICAR-Central Marine Fisheries Research Institute, Visakhapatnam 530 003, India
 

The study identifies factors behind the groundwater depletion in Punjab (India) and examines the economics of groundwater irrigation across farm-size categories, varied groundwater levels and energy policy scenario. The farm-level evidences point out that farmers with smaller land holdings incur 2-3 times groundwater cost than those with larger land holdings. Also, small farmers are affected more adversely due to falling groundwater level. Further, financial expenses in extracting groundwater are borne equally by the society and the farmers. The withdrawal of energy subsidy is expected to reduce net returns, but at a varying rate across different crops. However, crop cultivation would still be profitable and desubsidization will result in 29-82% savings in existing groundwater use in different crops.

Keywords

Crop Profitability, Energy Subsidy, Farm Economics, Groundwater Depletion.
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  • Revisiting Groundwater Depletion and its Implications on Farm Economics in Punjab, India

Abstract Views: 420  |  PDF Views: 124

Authors

S. K. Srivastava
ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
Ramesh Chand
NITI Aayog, Government of India, New Delhi 110 001, India
Jaspal Singh
ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
Amrit Pal Kaur
ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
Rajni Jain
ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
I. Kingsly
ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India
S. S. Raju
ICAR-Central Marine Fisheries Research Institute, Visakhapatnam 530 003, India

Abstract


The study identifies factors behind the groundwater depletion in Punjab (India) and examines the economics of groundwater irrigation across farm-size categories, varied groundwater levels and energy policy scenario. The farm-level evidences point out that farmers with smaller land holdings incur 2-3 times groundwater cost than those with larger land holdings. Also, small farmers are affected more adversely due to falling groundwater level. Further, financial expenses in extracting groundwater are borne equally by the society and the farmers. The withdrawal of energy subsidy is expected to reduce net returns, but at a varying rate across different crops. However, crop cultivation would still be profitable and desubsidization will result in 29-82% savings in existing groundwater use in different crops.

Keywords


Crop Profitability, Energy Subsidy, Farm Economics, Groundwater Depletion.

References





DOI: https://doi.org/10.18520/cs%2Fv113%2Fi03%2F422-429