Profitable paddy may help worsen Punjab water crisis

By Ikhhlaq Singh Aujla

Chandigarh, India (Reuters) - Punjab's plans to ease ground water depletion, by encouraging a shift in cultivation from water-intensive paddy to corn, may be defeated if the minimum support price (MSP) for paddy is raised, experts said.

The Commission for Agriculture Costs and Prices (CACP) has recommended increasing the MSP of common paddy by 255 rupees to 1,000 rupees and A grade variety by 275 rupees to 1,050 rupees.

It also recommended raising MSP for corn by 220 rupees to 840 rupees per 100 kg.

The federal government fixes MSP of kharif or summer sown crops based on CACP recommendations, usually before June, when farmers start cultivation.

If the CACP's recommendations are accepted, then corn farmers could shift to paddy as there is a huge difference in proposed prices, said Dr P.S. Rangi, marketing consultant at Punjab State Farmers Commission (PSFC).

"Even in some areas of the cotton belt, farmers may get tempted to grow paddy as its market is assured," Rangi said.

The state's water table is falling by 70 centimetres each year in central districts of Punjab, K S Sodhi, joint director of hydrogeology, told Reuters last month.

In 2007/08, area under paddy and corn in the state was 2.6 million hectares and 159,000 hectares respectively. In 2008/09, the state wants to reduce area under paddy to 2.48 million hectares and increase corn area to 200,000 hectares.