ICRIER Suggests New Policies to Help Farmers in Punjab and Haryana

ICRIER Suggests New Policies to Help Farmers in Punjab and Haryana

ICRIER Suggests New Policies to Help Farmers in Punjab and Haryana

The Indian Council for Research on International Economic Relations (ICRIER) has recommended that the governments of Punjab and Haryana change their subsidy policies for rice and wheat farmers. This change aims to help farmers grow different types of crops and reduce stress on the environment.

Key Recommendations

ICRIER’s report, titled ‘Saving Punjab and Haryana from Ecological Disaster: Re-aligning Agri-Food Policies,’ suggests six main actions:

  • Provide an upfront incentive of Rs 30,000-40,000 per hectare for farmers who grow crops other than paddy.
  • Ensure minimum support prices (MSPs) for non-paddy crops like pulses, cotton, millets, maize, and oilseeds.
  • Promote Public-Private Partnerships for carbon/green credits.
  • Encourage high-value ‘One District – One Product’ clusters targeting exports.

ICRIER believes these steps are possible if both state and central governments work together.

Current Challenges

Farmers in Punjab and Haryana mainly grow paddy and wheat because these crops offer better financial returns. However, this has led to environmental problems like water depletion, pollution from stubble burning, and health issues due to agrochemicals.

Proposed Solutions

ICRIER suggests a more robust incentive of Rs 30,000 to Rs 40,000 per hectare for farmers who switch to non-paddy crops. Haryana has already introduced an incentive of Rs 7,000 per acre, but ICRIER believes this is not enough.

The report also highlights the need for better MSPs for non-paddy crops to protect farmers from market fluctuations.

Environmental Impact

The intensive farming of paddy and wheat has caused significant environmental damage. The use of agrochemicals has led to health issues like cancer and kidney failure among the local population. Groundwater levels are also depleting, and stubble burning contributes to air pollution.

ICRIER’s recommendations aim to create a more sustainable farming system that benefits both the environment and the farmers.

Doubts Revealed


ICRIER -: ICRIER stands for the Indian Council for Research on International Economic Relations. It is a think tank that studies economic policies and suggests improvements.

Punjab and Haryana -: Punjab and Haryana are two states in northern India. They are known for their agriculture, especially growing crops like wheat and rice.

subsidy policies -: Subsidy policies are rules set by the government to give financial help to farmers. This can make it cheaper for them to grow crops.

environmental stress -: Environmental stress means problems in nature, like water shortage or soil damage, that make it hard to grow crops.

incentives -: Incentives are rewards or money given to encourage people to do something, like growing different crops.

Rs 30,000-40,000 per hectare -: This means giving farmers between 30,000 and 40,000 rupees for every hectare of land they use to grow non-paddy crops. A hectare is a big piece of land, about the size of a football field.

minimum support prices -: Minimum support prices are the lowest prices the government promises to pay farmers for their crops. This helps farmers earn a fair income.

Public-Private Partnerships -: Public-Private Partnerships are when the government and private companies work together on projects. This can help improve farming by bringing in new ideas and money.

high-value export clusters -: High-value export clusters are groups of farms that grow crops which can be sold for a lot of money in other countries. This helps farmers earn more.

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