Targeting Agricultural Electricity Subsidies in Haryana

A survey of 1,600 farmers in Haryana reveals that agricultural electricity subsidies are poorly targeted, with the wealthiest farmers receiving 50% of benefits compared to 30% for the poorest. The report recommends leveraging the PM-KUSUM scheme to transition low-income farmers to solar-powered irrigation and replacing flat-rate tariffs with slab-based tariffs to reduce subsidies for large landowners. It also emphasizes the need for dynamic registries and coordination between state agencies to accurately identify poor beneficiaries.

• Agricultural electricity subsidies in Haryana are poorly targeted, with the wealthiest farmers receiving 50% of the subsidies while the poorest farmers receive only 30%.
• The PM-KUSUM scheme can improve subsidy targeting by providing financial assistance for solar-powered irrigation to marginal and low-income farmers, although awareness of the scheme is low, with only about 17% of surveyed farmers having heard of it.
• To reduce fiscal stress on distribution companies (DISCOMs) and the state government, the report suggests moving from flat-rate tariffs to slab-based tariffs to ensure large landowners pay higher tariffs and that benefits flow to marginal farmers.
• Effective subsidy targeting requires the creation of dynamic registries of poor farmers through coordination between DISCOMs and state agencies that track landholding size and access to welfare schemes.

APA

Moerenhout,, A. V. S. A. (2022). Targeting Agricultural Electricity Subsidies in Haryana. International Institute for Sustainable Development. https://www.iisd.org/publications/report/targeting-agricultural-electricity-subsidies-haryana

Chicago

Moerenhout,, Anjali Viswamohanan,Shruti Sharma,Michael Aklin,Tom. Targeting Agricultural Electricity Subsidies in Haryana. International Institute for Sustainable Development, 2022. https://www.iisd.org/publications/report/targeting-agricultural-electricity-subsidies-haryana.

Wikipedia

{{cite report |last1=Moerenhout, |first1=Anjali Viswamohanan,Shruti Sharma,Michael Aklin,Tom |title=Targeting Agricultural Electricity Subsidies in Haryana |publisher=International Institute for Sustainable Development |date=28 April 2022 |url=https://www.iisd.org/publications/report/targeting-agricultural-electricity-subsidies-haryana |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moerenhout2022targeting, author = {Moerenhout,, Anjali Viswamohanan,Shruti Sharma,Michael Aklin,Tom}, title = {{Targeting Agricultural Electricity Subsidies in Haryana}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = apr, url = {https://www.iisd.org/publications/report/targeting-agricultural-electricity-subsidies-haryana}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }