·The Hindu·15 marks·250–350 words

Discuss how India's MSP and procurement policy has contributed to groundwater over-exploitation in states like Punjab. Suggest reforms to align food security policy with water sustainability.

In this answer
  1. How MSP and procurement drive over-extraction
  2. Reforms to reconcile food security with water security

India's 2025 Dynamic Groundwater Resources Assessment categorises 730 of 6,762 assessment units (10.80%) as 'over-exploited' [1]; Punjab, with a 152% extraction rate and 72% of its 153 blocks in the red zone, is the worst affected [2]. This crisis is less a hydrological accident than a predictable outcome of an assured-procurement model built for grain security.

How MSP and procurement drive over-extraction

  • Assured price, assured buyer: Green Revolution-era procurement made paddy the only crop with guaranteed offtake, locking Punjab into a rice-wheat monoculture in a naturally water-scarce agro-climatic zone [2].
  • Risk asymmetry: alternatives like maize, pulses and oilseeds lack comparable price assurance, storage and processing chains, so refusing to diversify is economically rational [2].
  • Two subsidies pulling the same way: central MSP procurement plus state-level free farm power make pumping costless at the margin; irrigation for rice and wheat alone consumes about 25 billion cubic metres of groundwater yearly [2].
  • A widening "water wealth" gap: as tables fall, wealthier farmers sink deeper tube wells and extract more, while marginal farmers—though more water-efficient—are forced to buy water [2].

Reforms to reconcile food security with water security

  • Procurement-led diversification: extend assured procurement and market infrastructure to less thirsty crops, shifting paddy sourcing toward water-surplus eastern states.
  • Reward saving, not withdrawal: scale Punjab's Paani Bachao Paisa Kamao model, which retains free power but pays farmers cash for unused units [4].
  • Widen Atal Bhujal Yojana: the scheme's community-led toolkit—micro-irrigation, crop diversification, feeder separation—currently covers seven states, excluding Punjab [3].
  • Solarise pumping along NITI Aayog–World Bank lines, buying back surplus solar power so farmers earn by pumping less [5].

Groundwater is the invisible foundation of India's food security; mining it to sustain procurement trades tomorrow's harvest for today's. Aligning MSP incentives with aquifer realities—and weighting benefits toward small holders—can make food security genuinely sustainable, in keeping with SDG 6 on water.

Sources

  1. 1Dynamic Groundwater Resources Assessment, 2025 — PIB, Ministry of Jal Shaktinational over-exploited units, recharge and extraction data
  2. 2The Hindu, "Water wealth: Groundwater exploitation in Punjab disincentivises small farmers"Punjab's 152% extraction rate, red-zone blocks, rice-wheat lock-in, differential access by landholding
  3. 3Cabinet approves Atal Bhujal Yojana — PIB₹6,000 crore scheme, seven states, demand-side measures
  4. 4Direct Benefit Transfer for Electricity to Agriculture: Paani Bachao Paise Kamao Scheme in Punjab — World Bankpay-for-unused-units design
  5. 5Energy-Water-Agriculture Nexus: Grow Solar, Save Water, Double the Farm Income — NITI Aayog & World Banksolar-led reform of farm pumping economics

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