Time to discontinue free power for farmers

Context:  The recent proposal by Centre to states prescribing replacement of free power schemes with Direct Benefit Transfer will help reduce widespread wastage of water and electricity.

Arguments against free power schemes:

• Financial Stress: States like Maharashtra have dropped the schemes due to huge power subsidy bills.

• The power subsidy bills in the four southern States and Punjab is almost ?33,000 crore

• Wastage of water and electricity: India is the largest user of groundwater exceeding the combined total withdrawal of China and the US. 
• Extension of the scheme to different States has only encouraged the installation of more pump sets.
• Misuse by the official: Absence of meters and accurate measurement provides loopholes to the official

• They reduce the aggregate technical and commercial losses by clubbing it with the farm sector. 

Arguments for free power schemes:

• Food Security, Livelihood opportunities, and fair treatment for the farmers outside the scope of canal irrigation necessitated free power schemes.

Way Forward

• There should be no justification for continuing the scheme to the farmers having access to other forms of irrigation like a canal. 
• A fair price mechanism should be developed along with awareness about the need for judicious use of groundwater and how to conserve it. 
• Change in the mindset of agriculturists and political parties towards the concept of free power can yield meaningful results.