Business Standard

Diwali ban: The real issue is elsewhere

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As Diwali approaches, attention is once again focused on New Delhi’s air quality and the factors that have been contributi­ng to its horrible state during this season. The Supreme Court’s ruling banning firecracke­rs is one more manifestat­ion of the pressure on the system to do something – anything – to address the problem. From a policy perspectiv­e, though, it is necessary to keep the larger picture in mind. While New Delhi’s problems may be newsworthy, the fact is that a major contributo­r to the problem, crop residue burning, has an impact not just in Delhi but across the region. Among other considerat­ions, longterm health implicatio­ns warrant a public policy response by way of structural solutions.

The proximate causes of the crop residue burning problem are well understood. Manual harvesting used to uproot the paddy plants completely, leaving the land ready for the next sowing. Combine harvesters, on the other hand, leave a stubble, which then needs to be uprooted manually. Steady increases in wages have made this unviable, to which the alternativ­e is burning. If New Delhi experience­s such an enormous impact, one can only shudder at the effects this is having on the residents in these areas. The firecracke­r ban is unlikely to make much difference to their quality of life. Enhanced technology and possible subsidy mechanism The second lesson from the US experience is on technology. High labour costs were obviously a considerat­ion in this environmen­t as well, so technologi­cal solutions logically focused on being able to sow the next crop without actually removing the residue. The key developmen­t in this regard was the tiller-less plough, which facilitate­s sowing with a still-standing residue. This technology appears to be in relatively widespread use in the US, with no apparent impact on land productivi­ty. Whether it will work in Indian conditions — e.g., what impact will the standing residue have on the next crop needs to be tested. The costs of implementa­tion and the design of a possible subsidy mechanism, which takes into the account the positive externalit­ies from stopping the burning also need to be explored. This is perhaps an agenda that the agricultur­al research establishm­ent can pursue on a priority basis, if it isn’t already doing so. If it is, then the activity and its outcomes should be

SRIRAM BALASUBRAM­ANIAN & SUBIR GOKARN

State-based regulatory frameworks So, what can we think of by way of structural solutions? Since the US agricultur­al sector was a pioneer in the use of combine harvesting, we thought it might be useful to look at its experience. A key component of the US response over the years has been that of very tight regulatory frameworks designed and enforced at the state level. Burning the residue may have been a factor, but over the years, state administra­tions have worked to prevent and deter actions that could directly degrade the environmen­t. Of course, large holdings and small population­s made this framework relatively easy to implement. Obviously, we don’t think that this offers any immediate solutions in India. But, since we’re thinking long term, it is necessary to start building up appropriat­e regulatory frameworks within which boundaries, incentives and penalties can be built in with consistenc­y and transparen­cy. made more visible. State-supported labour-support system Of course, capital-intensive technology is a natural outcome of a labour shortage situation. In a sense, this is what prevails in the concerned regions. Farmers have been asking for direct compensati­on by government to be able to hire workers to pull out the residue. From a policy perspectiv­e, the question is: what is the least cost way of deploying workers in enough numbers to make an appreciabl­e difference to the extent of burning? A number of alternativ­es can be assessed. For example, could MGNREGA resources be used to deploy workers in the few weeks between the harvest and the sowing to do the job? How would this be monitored? Alternativ­ely, the states affected could set up job corps (which could be used for other purposes at other times) to carry out this task when required. At what wage level would people be willing to participat­e in this? And, how could they be kept productive­ly occupied for a reasonable part of the year? If farmers were asked to directly hire workers with a wage subsidy, an Aadharbase­d direct payment mechanism based on certificat­ion of the work actually done could be considered.

In sum, we believe that an appropriat­e response should have both long-term and short-term components. The former will comprise combine the formulatio­n of a regulatory and enforcemen­t framework and, hopefully with quicker payoffs, adaptation of technologi­cal solutions that can accommodat­e the standing residue. The latter will focus on the efficient deployment of workers to pull out the residue, with at least some part of the cost being borne by the state. Firecracke­rs need not completely disappear from Diwali celebratio­ns.

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