‘Sticky Rice’: Variety inertia and groundwater crisis in a technologically progressive state of India
Kuhu Joshi,
Pramod Kumar Joshi,
Md. Tajuddin Khan and
Avinash Kishore
No 1766, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)
Abstract:
This paper studies the high adoption of Pusa 44, a long-duration and old rice variety cultivated in Punjab, despite the availability of new short-duration varieties and the overall technological advancement of agriculture. We use farm-household data from a primary survey conducted in 2016-17. Pusa 44 yields on average 2.5 quintals higher per hectare than competing short-duration variety PR 121. It also consumes 16 percent additional water because of its longer duration. As energy for groundwater irrigation is provided tariff-free by the state, Pusa 44 farmers obtain higher net returns even though they pump additional groundwater. Consequently, they have little economic incentive to switch to new short-duration varieties. This varietal stickiness is a pressing policy issue considering the ongoing groundwater crisis in the state. We show that Punjab currently incurs an additional energy-subsidy cost of US$ 49 million per annum on irrigating Pusa 44. Future costs will continue to multiply unless farmers are incentivized to switch to short-duration rice varieties.
Keywords: energy policies; technology adoption; hybrids; rice; capacity development; crop yield; energy for agriculture; water resources; innovation adoption; subsidies; water use; India; Southern Asia; Asia (search for similar items in EconPapers)
Date: 2018-11-09
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Persistent link: https://EconPapers.repec.org/RePEc:fpr:ifprid:1766
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