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Addressing Agricultural Power Subsidy:A Case Study of North Gujarat

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  • Vidyut Joshi

Abstract

Every subsidy, once granted creates a lobby with vested interests to see that it is retained in perpetuity. This, as in the case of other subsidies, is also true for agricultural power subsidy. Flat rate power tariff has encouraged farmers to over consume electricity, as the marginal cost of using the power is zero in the prevailing system. This has also resulted in fast depleting water tables in regions like the North Gujarat posing a serious threat not only to the environment but also to human survival. The sustainability of subsidy is questionable on both, financial as well as environmental grounds. This paper on the basis of fieldwork in North Gujarat tries to analyse the perceptions among various sections of the farmers and examines whether the subsidy is pro-poor in nature.

Suggested Citation

  • Vidyut Joshi, 2005. "Addressing Agricultural Power Subsidy:A Case Study of North Gujarat," Working Papers id:240, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:240
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