‘Subsidise farming, not farmers’

Started two decades ago, free power to Punjab farmers has since become a volatile issue linked to the politics of competitive populism. Here’s what experts say about it now, in light of report by farm panel

Rationalisation, not reduction, of subsidy for free power to farmers is the need of the hour, but trust deficit is an obstacle that policymakers have to surmount to bring farmers on board — this was the consensus among two leading experts, a farmers’ leader and two policymakers at a roundtable, The Great Free Power Debate, organised by Hindustan Times on Thursday. The Rs 5,300-crore subsidy is under the spotlight after the Punjab State Farmers’ and Farm Workers’ Commission, in its draft policy, recommended withdrawal of free power to farmers who own more than four hectares of land or pay income tax. Though a politically sensitive issue, power subsidy, which has been ballooning since 1997 when the then chief minister Parkash Singh Badal made electricity free for all farmers, has taken its toll on the state exchequer. Farmers’ commission chairman Ajay Vir Jakhar, additional chief secretary (development) Viswajeet Khanna, farm economist Sardara Singh Johl, Institute for Development and Communication director Pramod Kumar and Bharatiya Kisan Union (Rajewal) president Balbir Singh Rajewal dissected the problem threadbare in the 80-minute discussion moderated by Executive Editor Ramesh Vinayak.

Nowhere are we saying that agriculture doesn’t need to be subsidised. We are only saying we have limited means. If you want facilities to be given, we need to generate funds from farmers who already have enough. AJAY VIR JAKHAR, chairman, Punjab State Farmers’ and Farm Workers’ Commission Farmers make major contribution in food sovereignty. We can’t tell them to continue producing while we do not help them. Farm sector should be subsidised, not individual farmers. Don’t give subsidy through power sector; it can be given by way of direct benefit transfer. PRAMOD KUMAR, director, Institute for Development and Communication Punjab’s precarious fiscal health is well known. Subsidy going to the power corporation is delayed many times. This kind of ~6,000 crore every year only for free power may not be sustainable any longer. VISWAJEET KHANNA, additional chief secretary (development)

other parts of India. People say withdraw the Rs 6,000 crore rupees and spend it on education; I think it’s a misnomer. Johl: National and international and experts have suggested in the past but (Shiromani Akali Dal patron and former chief minister) Parkash Singh Badal said he would not stop free power. My feeling is that the future will not forgive (Congress leader and current CM) Capt Amarinder Singh and Badal for starting desertification of the state. Some policy had to be made; because underground water has gone so deep. If they are not willing to accept this, what can be done? There is a contradiction that the government wants to save water yet wants to give free power. I think subsidy is an important topic that everyone wants to come to. Primarily my one-year experience with the government is that the major problem Punjab faces is quality of governance at all levels. The draft also focuses on that. I will give examples — 80% greenhouses have failed, zero conviction on seed violation, just 17 convictions in case of (spurious) pesticides; we don’t have 50% strength of agriculture department and extension officers; Sangrur has the maximum number of suicides, and we have 15% of sanctioned posts here. This is where the role of the farmers’ commission comes. I think electricity subsidy is one part of it; there are other issues to address.

Kumar: I find one contradiction in the draft — you rightly said that we want governance to be fixed; and then we are getting into fiscal issues. We should deal with governance issues and then say we don’t need power subsidy but subsidy in another form.

Jakhar: I agree that we need subsidy to agriculture sector, rather more that what we are already giving. Also, we need to engage people in vocations other than agriculture in villages itself.