Amid rain deficit, rise in agriculture power usage costs state additional ₹1,125 crore

Punjab faces a financial burden due to scanty monsoon rainfall, leading to a 37% surge in agriculture power consumption, raising the subsidy bill by ₹1,125 crore.

The Punjab government is facing a staggering financial burden because of the scanty monsoon rainfall during the critical paddy transplantation season, driving a significant surge in agriculture power consumption. This sharp rise in power usage has added an extra ₹1,125 crore to the state government’s subsidy bill as the government provides free electricity to approximately 14 lakh agriculture tubewells across the state.

Power consumption peaked in July with farmers using 3,021 million units, a 34% increase from the 2,257 MU recorded in July last year.

The total agriculture subsidy from April to July amounted to ₹4,167 crore, up from last year’s corresponding period of ₹3,041crore.

According to the data released by the Punjab State Power Corporation Limited (PSPCL), farmers have used an additional 1,681 million units (MU) of electricity this year compared to the corresponding period last year, representing a 37% increase in power usage.

From April to July this year, Punjab’s agricultural sector consumed a total of 6,220 MU, up from 4,539 MU in 2023. The surge in electricity consumption is largely attributed to the farmers relying heavily on agriculture tubewells to irrigate their paddy fields owing to inadequate rainfall.

The situation has been exacerbated by a significant rainfall deficiency in June and July, with July witnessing a 45% shortfall compared to the long-period average.

As a result, power consumption peaked in July, with farmers using 3,021 MU, a 34% increase from the 2,257 MU recorded in July last year. “Most of the paddy transplantation in the state took place in July, coinciding with a drought-like situation. This led to a substantial increase in the use of agriculture tubewells,” explained a senior PSPCL official, wishing not to be named.

Agriculture experts said that timely rainfall in July was very crucial for paddy transplantation. Sans adequate rain, the farmers are forced to rely on groundwater to sustain their water-intensive crops, the experts said. This year, despite many farmers opting for the late-sown PR-126 paddy variety, which is typically planted in July to coincide with expected rainfall, the lack of rain has compounded the state’s challenges.

“The situation is a double blow for the Punjab government. On one hand, the agriculture subsidy bill has skyrocketed due to increased electricity consumption. On the other hand, the excessive extraction of groundwater poses long-term environmental concerns,” noted a senior official from the state agriculture department.