Bleeding Punjab and its exchequer dry: agri power subsidy, tubewells

Indian Express

18-05-2025

WITH DAYS to go before paddy sowing season starts in Punjab on June 1, the farmer unions have demanded eight hours of power supply, included three hours uninterrupted—from 7 am till 10 am.
Earlier, Power Minister Harbhajan Singh had said that the state would require about 17,000 MW power during paddy season and that Punjab State Power Corporation Limited (PSPCL) has made advance arrangements for the requirement.
In between, these two development, Chief Minister Bhagwant Mann announced that the agriculture fields, which get canal water, would not be given power for running tubewells during the daytime. The CM had then expressed dismay over farmers pumping out underground water even when they were being supplied canal water. 'I have learnt that the farmers switch on the motor even when the canal water is irrigating the fields. Sometimes, even when it rains, the motors are switched on,' Mann had said.
Mann's statement was as much a comment on the wastage of power — the government provides power to farmers at subsidised rates — as it was on overexploitation of underground water by farmers, especially during the water-intensive paddy season. The agri experts, co-relating the Punjab's groundwater crisis and its connection with power subsidy and tubewell costs — are now calling for a ban on paddy cultivation in the most over-exploited groundwater blocks, warning that failure to act now will result in long-term damage to both the environment and the state's finances.
Punjab's groundwater situation has been deteriorating for years. At 32.44 lakh hectares, the state witnessed an all-time high area under rice crop in the last season. Of the 150 agricultural blocks in the state, 60 (40%) are experiencing water extraction levels far beyond sustainable limits, with a groundwater extraction rate ranging from 201% to more than 301%. The average water extraction is 101% to 200% in 53 blocks and less than 100% in 37 remaining blocks.
According to data obtained from the Punjab Agricultural University (PAU) and the Punjab Agriculture Policy-2023, which is yet to be implemented, 15 blocks are facing an acute groundwater crisis with extraction levels exceeding 301%, signaling that the water being drawn from the ground in these areas is far greater than the rate at which it is replenished. These blocks are considered highly over-exploited. An additional 16 blocks have extraction rates between 251% to 300%, and 29 blocks are extracting groundwater at levels between 201% to 250%. This large-scale overexploitation of groundwater is raising serious concerns among experts, who warn that if immediate action is not taken, these blocks will continue to deplete their water resources at a devastating pace.
The economic burden: Power Subsidy and Tubewell Costs
Not only is groundwater being drained, but the financial burden on both farmers and the state government is increasing. The tubewells [agricultural pumps] used for irrigation in these over-exploited blocks are consuming disproportionately higher amounts of electricity, which is placing a significant strain on the power subsidy system. It further forces farmers to use more powerful motors with higher horsepower (BHP) to operate the tubewells for extracting water from deep down.
According to the PSPCL, the average annual agricultural power (AP) subsidy per connection in Punjab is Rs 53,984 (2022-23). However, in the over-exploited blocks like Barnala (Rs 89,556), Sangrur (Rs 84,428), Patiala (Rs 78,476), and Moga (Rs 75,812), the power subsidy per connection is considerably higher.
In addition to the high subsidy costs, farmers in these regions are forced to spend large sums of money to deepen their tubewells as groundwater levels continue to decline.
Urgent call for phased reduction of paddy cultivation
Given the alarming rates of groundwater depletion and the escalating costs of power subsidies, it is clear that paddy cultivation in the most over-exploited blocks cannot continue without catastrophic consequences. Even the Agricultural Policy-2023 acknowledges this, with experts urging the government to take bold actions. One of the key recommendations is the phased reduction of paddy cultivation in blocks where groundwater extraction exceeds 200%. The government must phase out paddy farming in these areas and transition to crops that consume less water. Furthermore, farmers should be encouraged and financially supported to grow more sustainable crops like cotton, maize, sugarcane, vegetables, and orchards.
Experts call for immediate action
Experts from PAU have raised alarm, emphasising the urgent need to stop cultivating water-intensive crops like paddy in these over-exploited blocks. Dr Rakesh Sharda, Principal Scientist (Plasticulture), Soil and Water Engineering Department at PAU, has pointed out that in addition to prohibiting paddy cultivation in these blocks in a phased manner, there is a need to incentivise the adoption of water-saving technologies. The use of Direct Seeded Rice (DSR) technology and other water-efficient techniques should be promoted in blocks where groundwater extraction is between 100% and 200%. Moreover, efforts to recharge groundwater in these areas must go hand in hand with promoting crops that can benefit from systems like drip irrigation and other micro-irrigation technologies. Such measures will help ensure sustainable farming in the long run while addressing the critical issue of groundwater depletion, added he.
He also advocated for ensuring farmers are not financially burdened during this transition. It is crucial to offer adequate compensation and support for their shift from paddy to alternative crops. This could include subsidies, technical assistance, and training on water-efficient farming practices, he emphasised.