New scheme to help farmers move away from paddy cultivation

Source: The post new scheme to help farmers move away from paddy cultivation has been created, based on the article “How to help Haryana and Punjab move away from paddy to less water-guzzling crops” published in “Indian Express” on 2nd August 2024 

UPSC Syllabus Topic: GS Paper 3– Major Crops – Cropping Patterns in various parts of the country. 

Context: The article discusses a new scheme by the Centre and Punjab government to encourage farmers to shift from water-intensive paddy to less water-demanding crops. It suggests increasing incentives and ensuring reliable procurement for alternative crops to ensure success. 

For detailed information on Shift in Cropping Patterns read this article here 

What is the New Scheme Introduced by the Centre and Punjab Government? 

1. The Centre and Punjab government have launched a new scheme to help farmers move away from paddy cultivation. 
2. This scheme offers an incentive of Rs 17,500 per hectare to farmers who switch to less water-demanding crops during the kharif season. 
3. The scheme covers up to five hectares per beneficiary and is funded in a 60:40 ratio between the Centre and the Punjab government, with a total cost of Rs 289.87 crore for 2024-25.

What are the Benefits of Moving Away from Paddy? 

1. Water Conservation: Paddy requires 20-25 irrigations, whereas pulses, oilseeds, and millets need less than four irrigations. This shift can help conserve groundwater, crucial since 87% of Punjab’s 153 blocks are over-exploited.
2. Environmental Protection: Paddy emits 5 tonnes of CO2 per hectare, contributing to climate change. Reducing paddy cultivation can lower greenhouse gas emissions.
3. Pollution Reduction: Shifting from paddy can decrease stubble burning, a major pollution source.
4. Economic Stability: Diversification could earn farmers up to four carbon credits per hectare, opening carbon market opportunities.

What are the Challenges in Implementation? 

1. Inadequate Incentives: The current incentive of Rs 17,500 per hectare is insufficient when compared to the subsidy of Rs 38,973 per hectare that paddy farmers receive, making paddy far more profitable.
2. Short-term Policy Duration: The uncertainty whether the Rs 17,500 incentive is for a year or more poses a risk. Longer-term incentives are needed for sustainable change.
3. Lack of Guaranteed Procurement: Unlike paddy, there’s no assured procurement for alternative crops like pulses and oilseeds, increasing market risks for farmers switching crops.

What Should be Done? 

1. Ensure assured procurement of alternative crops like pulses and oilseeds at MSP by NAFED, reducing market risks for farmers.
2. Redirect the savings from reduced subsidies on power, canal water, and fertilisers to fund this transition, potentially freeing up Rs 13,150 crore by reducing paddy procurement costs.
3. Encourage a market-oriented, cluster-based approach for high-value horticulture crops, engaging Farmer Producer Organisations in export-focused initiatives, especially in West Asia.

Question for practice: 

Examine the key challenges and potential solutions in the implementation of the new scheme by the Centre and Punjab government to encourage farmers to shift from paddy cultivation to less water-demanding crops.