Punjab farm power subsidy benefits big farmers more than the small ones

A major part of the farm power subsidy, ostensibly introduced for Punjab’s poor farmers, has been appropriated by the state’s medium and big farmers.

While 3.62 lakh farmers in this strata (medium and big farmers) pocket 56 per cent of the power subsidy, the small, semi-medium and marginal farmers, who at 7.29 lakh account for double this number, get the remaining 44 per cent.

The issue was highlighted by a recent report to Punjab government by Group of Experts (GOE) led by noted economist Montek Singh Ahluwalia.

The Group of Experts, which was set up by CM Amarinder Singh to revive Punjab’s economy, called the farm power subsidy “regressive” on the ground that it largely benefitted the big farmers.