The ICRIER economists propose a Rs 35,000 per hectare incentive to encourage farmers in Punjab and Haryana to shift from paddy cultivation to more sustainable crops like pulses, oilseeds, millets, and maize during the kharif season. This initiative aims to improve ecological sustainability and profitability in agriculture.
Under the leadership of Ashok Gulati, ICRIER's research paper titled 'Saving Punjab and Haryana from Ecological Disaster: Re-aligning Agri-Food Policies' outlines recommendations to mitigate environmental impacts associated with current agricultural practices in these states. Currently, subsidies predominantly favor paddy cultivation, prompting the Haryana government to introduce a Rs 7,000 per acre incentive to incentivize farmers in water-deficient regions to switch crops. However, this amount is insufficient for farmers transitioning to crops like maize, oilseeds, and millets.
To address this, ICRIER proposes a more substantial incentive of Rs 30,000 to Rs 40,000 per hectare, to be equally funded by the central and state governments. Specifically, this would double the existing state subsidy in Haryana, providing farmers Rs 35,000 per hectare to transition away from paddy.
This transition is designed to relieve government budgets by reallocating subsidies currently directed towards electricity, water, and fertilizers. The paper estimates potential savings of Rs 4,000 to Rs 6,000 crore, feasible with political commitment, through redirecting these resources to support non-paddy crops.
Moreover, the paper highlights income opportunities for farmers through carbon credits. By reducing greenhouse gas emissions from crop diversification, farmers could earn up to 4 carbon credits per hectare, valued between Rs 6,288 and Rs 12,576. Shifting cultivation from paddy could also conserve significant water resources, approximately 14.2 billion cubic meters, which can be monetized through green credits, offering further financial incentives for sustainable practices.
Lastly, the research emphasizes the need for modern storage, processing, and logistics facilities to strengthen the market for alternative crops and facilitate their export. These measures aim to enable Punjab and Haryana to transition towards sustainable and economically viable agricultural practices, thereby mitigating potential ecological risks.
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