Punjab House panel mulls withdrawal of power subsidy to big farmers
Only 1.83 lakh farmers have a single tubewell connection In all, there are 14.50 lakh tubewell connections in the state Out of Rs 20,243 crore power subsidy this year, Rs 9,331 crore is for the farm sector
Punjab House panel mulls withdrawal of power subsidy to big farmers
Chandigarh: The Public Accounts Committee (PAC) of the Punjab Vidhan Sabha has held a discussion on withdrawing free power to farmers having large landholdings. Different studies have showed how majority of the “untargeted power subsidy” was being availed by large farmers and only a fraction of small and marginal farmers (having less than 5 acres of land) were benefiting from it.
Tript Rajinder Singh Bajwa, PAC Chairman said that While some PAC members suggested that all pump sets should be metered, others recommended that the subsidy to large farmers should be withdrawn.
In 2017, economist RS Ghuman’s study revealed that only 6.6 per cent of tubewells were of marginal farmers (who own less than 2.5 acres of land) and 11. 88 per cent of small farmers (having 2.5- 5 acres of land). The operational land holdings of these farmers stood at 34.19 per cent and 95 per cent of farmers’ suicides were reported from these two categories.
Ghuman said, “Ironically, more than 81 per cent of the subsidy is being cornered by the medium and large farmers (having over 10 acres of land). It should go only to the small and marginal farmers who are living on the edge. Also, there is a link between free power to agriculture sector, increase in area under water-guzzling paddy and depleting groundwater table.”
This “untargeted subsidy”, coupled with the fact that the excessive groundwater extraction because of rampant use of tubewells, is the reason that the issue has gained the limelight.
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