Payment for not burning stubble?

Business Standard     2nd November 2020     Save    
QEP Pocket Notes

Context: The government policy to stop stubble burning through payments to the farmers is regressive in nature.

Problems related to giving payment for not burning stubble

  • It will be a perverse incentive:  It may promote what is wrong: For, E.g. the Punjab government disbursement of payments to stop stubble burning has actually led to the rise of it.
  • Increased moral hazard: There will be a demand to raise the reward every year.

Way Forward: Alternative ways to deal with stubble burning

  • Take steps to increase the time period between harvesting paddy and sowing the next wheat crop: Government has shortened this period citing the reason of overexploitation of groundwater. 
  • Provide Minimum Support Price (MSP) for Basmati paddy: Stubble of basmati paddy is not burnt because it can be used for fodder, but farmers do not prefer it due to lack of MSP.
  • Provide machines to plough back the straw into the ground: Tilling biomass back into the ground would also improve soil fertility.
  • For, E.g. in Punjab alone, some 50,000 machines had been given at 80 % subsidy to custom-hiring centres and to individual farmers. 
  • Provide value to the biomass: Biomass can be used to generating power and Compressed Biogas (CBG).
  •  Use a straw to replace coal in old power plants: This would help to extend the life of the built infrastructure and will reduce environmental costs.
  • Positive steps in this direction include -  
  • The first CBG project will go online by early 2021, and many more are in the pipeline.
  • Reserve Bank of India put CBG on its list of priority sector lending, and the State Bank of India has circulated a loan scheme for this
  •  Oil companies have agreed on a buy-back rate of Rs 46/kg for five years.
  • Diversification of cropping pattern.

Conclusion: To justify that farmers must burn the stubble if they are not paid cash incentive is doing injustice to them and to the lungs of the children of the country.

QEP Pocket Notes