Water wealth, Pg6

Key Highlights:

• Punjab's groundwater extraction rate reached 152% as per the 2025-26 Dynamic Groundwater Assessment.
• 72% of the state's 153 blocks are categorized as 'over-exploited' or in the 'red zone', the highest nationally.
• Approximately 25 billion cubic metres of groundwater is consumed annually for rice and wheat irrigation.
• The percentage of observation wells with water below 40 meters increased by two percentage points from 2022 to 2025.
• The 'Pani Bachao, Paisa Kamao' scheme offers cash incentives to farmers for saving electricity used in pumping.

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Detailed Insights:

• The intensive rice-wheat cropping system, supported by assured procurement and subsidized electricity, is a primary driver of over-extraction.
• Lack of storage, price certainty, and processing infrastructure discourages farmers from diversifying away from traditional crops.
• Groundwater depletion exacerbates the wealth gap, as only affluent farmers can afford deeper tube wells, forcing others to purchase water.
• Research indicates that larger farms exhibit lower groundwater productivity for paddy compared to smaller farms, despite higher returns.
• State efforts include direct support to smallholder farmers and collectivization of irrigation infrastructure to manage demand.
• Shifting subsidies to directly benefit cultivators, including tenants, rather than land or pump owners, could promote equitable water access.

Key Concepts Involved:

• Dynamic Groundwater Assessment: A report by the Central Ground Water Board evaluating groundwater resources and extraction levels.
• Over-exploited blocks: Regions where annual groundwater extraction significantly surpasses the annual replenishable groundwater recharge.
• Pani Bachao, Paisa Kamao Scheme: A Punjab government initiative incentivizing farmers with cash for reducing electricity consumption for pumping.
• Cropping System: The specific pattern of crops cultivated on agricultural land over a defined period, influenced by various factors.