Stubble burning IIM-Amritsar researchers back farmers’ claims, say cash incentives only solution to problem

The old story of stubble burning of paddy fields in Punjab is returning to the front pages again. As the winter weather approaches and the gaseous smoke from the fires reach Delhi, making breathing difficult — as well as delaying flights, shutting down schools and choking hospitals — Punjab’s farmers are about to be caught in the headlights, between a sickle and a plough. In this deadly drama, it is more than likely they will soon be cast, once again as culprits.

Studies estimate that stubble burning contributes up to 32 per cent of India’s air pollution during peak months. For cities like Delhi, downwind of Punjab, the result is choking smog that rivals the world’s worst industrial zones.

As for a possible solution to the pressing dilemma, a new study from IIM-Amritsar has backed the claims of farmer unions and agrees that cash incentives for stubble management is a real answer. Farmer unions as well as the Punjab Pollution Control Board (PPCB) are said to be poring over the study.

But first, the contours of the problem.

Paddy is cultivated between 32 to 35 lakh hectares across Punjab and generates approximately 20 million tonnes of paddy stubble annually. The threshed paddy has begun to reach the mandis already, despite the unexpected flooding from Punjab rivers over the last couple of months, the unseasonal rain this week and the rising nervousness of the paddy farmer — how well is his crop going to sell this year?

And most importantly, how much time will he have before he can sow the wheat, the second crop in the two-crop cycle that consumes his life.

A new study published by Sujit Raghunathrao Jagadale an Assistant Professor and researcher Javed M Shaikh from IIM-Amritsar, published in the Journal of Macromarketing attempts to paint a more compassionate picture. It argues that stubble burning is not a reckless tradition, but the by-product of policies, markets, and survival pressures that leave farmers with no alternative.

A system that

traps farmers

The researchers found, via interviews with cultivators in Amritsar, Gurdaspur, and Tarn Taran, that the Minimum Support Price (MSP), the fundamental tenet of Punjab’s agricultural economy which aims to give a basic fixed price per quintal of yield, is also the root cause of the problem.

In effect, the researchers found, MSP has become a trap, even a noose around the neck of the unsuspecting farmer.

On the one hand, MSP offers a semblance of income security in an otherwise volatile market. However, by incentivising the cultivation of just two crops, MSP discourages diversification. Fields are locked into the wheat-rice cycle, which produces enormous volumes of crop residue. With just two weeks between paddy harvest and wheat sowing, farmers see burning as the only practical way, cheapest, quickest option to clear fields, finds a study.

This contradiction lies at the heart of the problem. The state penalises stubble burning, but its policies create the very conditions that make burning inevitable.

As a younger farmer asked the researchers pointedly, “What are we to do with the stubble when there’s no market to sell it, and the government isn’t buying it? There’s no money to be made from it, and despite promises, the government isn’t providing subsidies. We understand the environmental harm, but without funds or resources, we have no way to manage the stubble effectively.”

Commission agents

The second aspect of the conundrum, alongside MSP, is the commission agent—or arhtias— who control crop pricing, loans, and market access, often leaving farmers too indebted to invest in alternatives. Even where the state steps in to buy grain, the actual interface between farmers and procurement agencies is controlled by these arhtias.

One farmer, explaining the unique role of the arhtia to the IIM-Amritsar researcher, described them as middlemen who have evolved into power brokers who determine what farmers grow, how much they earn, and when they get paid. He mourned the manipulation of the price of paddy at their hands.

“The difference in rice pricing is based on variety—long-grain rice sells for INR 2,500–3,000 per quintal, while short-grain sells for INR 2,000. However, commission agents unfairly adjust prices based on stains, moisture, and dryness within each type, which is beyond our control. We have no choice but to accept whatever the agent decides, causing financial loss,” the farmer said.

The study reveals how this system creates patron–client dependencies. Arhtias do not merely buy crops; they also extend loans at high interest rates, sponsor family events, and help farmers bridge seasonal income gaps. In return, farmers are bound to sell exclusively through them, surrendering bargaining power.

Beyond the blame game

The study also highlights how shrinking landholdings, high education and healthcare costs, and rising aspirations push farmers further into debt. For many, stubble burning is not carelessness but a rational, if harmful, calculation: quick fire in the morning, wheat sowing by evening.

The environmental toll of stubble burning is well-documented. According to the Intergovernmental Panel on Climate Change (IPCC), nearly 25 per cent of India’s crop residue is burned. This releases greenhouse gases and black carbon, a warming agent second only to carbon dioxide.

The larger lesson is clear. Farmers are not villains in this story but victims of a system that prioritises cheap food and industrial interests over sustainable livelihoods. “Farmers fill state warehouses with grain, yet receive nothing in return,” one interviewee said in the study.

Towards real solutions

The researchers call for moving beyond punitive bans. They propose creating a value chain for stubble—assured prices, markets for stubble-based products, energy plants using biomass, and cash subsidies for transport.

Technological fixes such as apps linking farmers directly to stubble buyers, along with long-term reforms like crop diversification and farmer social security, could help break the cycle.

Cash incentive a solution

Studies stress that until policy, markets, and governance align with farmer welfare, Punjab’s fields will keep burning—along with hopes for cleaner air.

Jagadale said cash incentive per acre, post-harvest, could motivate farmers to switch to sustainable practices.

He further said that the solution is not just about machine subsidies but must also include support for fuel and tractor rentals, ensuring that Custom Hiring centre (CHCs) and cooperatives provide timely and affordable services to smallholders.

Encouraging farmer-to-farmer learning from progressive crop residue management (CRM) users and promoting lighter, more affordable machines compatible with low-horsepower tractors are also necessary steps.

With 1.57 lakh CRM machines — 1.48 lakh distributed since 2018, and an additional 9,000 out of 12,500 planned for this year already been handed out to the farmers.