Addressing Agricultural Power Subsidy: A Case Study of North Gujarat

This paper on the basis of fieldwork in the region of North Gujarat tries to analyze the perceptions among various sections of the farmers and examines whether the subsidy is pro-poor in nature. The paper, by citing field experiences, shows that the big farmers are reaping the benefits of subsidy and selling water to the small and marginal farmers who are at the receiving end. Flat rate tariff structure has resulted in a highly skewed distribution of subsidy which is regressive in nature. Policy intervention is required to reform the subsidy structure so that it becomes targeted, reaches small and marginal farmers and prevents further depletion of ground water resource in a region which has one of the world’s most severely over exploited aquifers.