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Fixing agricultural power tariff without hurting farmers

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  • M. Dinesh Kumar
  • A. Narayanamoorthy

Abstract

Removal of power subsidies in the agriculture sector has been a very contentious issue in India for decades. Free power and tariffs based on the connected load create incentives for farmers to use groundwater excessively and inefficiently. We argue that a pro rata tariff for electricity in the farm sector that reduces the demand for electricity and irrigation water will not only be socio-economically viable but also improve farm economy and the viability of the power sector. We also propose the use of information and communications technology to reduce the transaction cost of metering of agro wells.

Suggested Citation

  • M. Dinesh Kumar & A. Narayanamoorthy, 2021. "Fixing agricultural power tariff without hurting farmers," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 37(6), pages 1035-1039, November.
    • Handle: RePEc:taf:cijwxx:v:37:y:2021:i:6:p:1035-1039
    DOI: 10.1080/07900627.2020.1823335
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