Wheat and Rice Farm Subsidies Leading To Depletion Of Groundwater Reserves In India

New Delhi, Oct 14 (KNN) Researchers have raised concerns that India’s agricultural output subsidies, designed to ensure government purchase of rice and wheat at above-market prices, are accelerating groundwater depletion and threatening the long-term sustainability of agriculture in key farming regions.

A study published in Nature Communications found that these subsidies have led to overproduction of rice and wheat — two water-intensive crops — by nearly 30 per cent, spurring excessive groundwater extraction.

Experts warn that this trend could push India’s primary agricultural regions, particularly Punjab, towards desertification.

Esha Zaveri, an environmental economist at the World Bank and lead author of the study, stressed that while subsidies aim to support farmers and consumers, they have also imposed significant environmental costs.

“The impact of subsidies on groundwater depletion has been largely overlooked in policy design,” Zaveri told The Telegraph.

The researchers focused on two states with contrasting groundwater conditions: Punjab and Madhya Pradesh. Punjab, located in the fertile northern plains, has seen groundwater levels decline by over eight meters on average, with some areas experiencing drops of up to 30 meters.

Between 1981 and 2015, post-monsoon water levels in the state plummeted from five meters below ground to ten meters, with increased rice production being a major contributor to at least half of the decline.

In Madhya Pradesh, where farmers rely on hard rock aquifers that deplete and refill annually, wheat subsidies have driven rapid expansion of cultivation. Wheat production surged between 2008 and 2015 after the state introduced a bonus on top of the national minimum support price.

This period saw a 70 per cent rise in government procurement of wheat, with corresponding increases in dry wells and a 3.4 pr cent rise in the need for deeper tubewells.

The researchers caution that the depletion of groundwater in northern India’s alluvial plains—natural buffers against climate instability—has made the region vulnerable to desertification. “Policymakers need to rethink subsidy structures to ensure future agricultural resilience,” Zaveri and her co-authors wrote.

They recommend shifting from crop-based subsidies toward income support systems that buffer farmers from market risks without encouraging over-reliance on water-intensive crops.

“The future of agricultural resilience lies in adopting new technology and boosting investments in agricultural research,” said Zaveri. While institutions such as the Indian Council of Agricultural Research already promote climate-resilient farming, Zaveri emphasised that more resources are essential to enhance their efforts.

Rebalancing subsidies with investments in agricultural innovation will require building trust with farmers, the researchers noted. However, they insist that alternative support models not tied to water-intensive crops can work if designed carefully.

(KNN Bureau)