Repurpose subsidies and offer MSP for other crops to wean Punjab & Haryana from paddy
paddy cultivation emits 5 tonnes of CO2 equivalent/ha of GHG emissions in these states, the highest GHG/ha among states. Climate change-induced erratic weather patterns, rising temperatures and heatwaves exacerbate this existential threat.
While many experts advocate farmers diversify from paddy, the economic reality is that policies and subsidies are skewed towards paddy cultivation. According to an ICRIER study, 'Saving Punjab and Haryana from Ecological Disaster: Re-aligning Agri-Food Policies', paddy received highest subsidy among all crops in Punjab, approximately ₹38,973 per ha during 2023-24.
This included subsidies from GoI (fertiliser) and Punjab state government (power and canal irrigation). When considering additional subsidies for managing crop residues in the field and post-harvest, financial support for paddy cultivation would easily go beyond ₹40k per hectare.
With paddy profitability — over A2 cost, which covers all paid-out costs directly incurred by the farmer in cash and kind on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, and irrigation — of ₹86,156/ha in Punjab (2021-22 agriculture ministry 'Cost of Cultivation' data), it is evident that the paddy subsidy constitutes more than 30% of its profit. That partly explains the high profit margin for paddy vis-a-vis its kharif counterparts in Punjab and Haryana.
Farmers' preference towards paddy is also rooted in its assured procurement at MSP, which is fixed to be no less than one-and-a-half times their production costs. This
