States ought to expand the MSP strategy to include the purchase of all crop waste at a competitive price. They ought to give private parties access to land for the reasonable storage and conversion of agricultural waste into pellets in exchange for a licence fee.

The rice crop is almost ready to be harvested, and the crop residue will next be widely burned. Northern India's air pollution levels would soar once more, particularly in Delhi and the National Capital Region. Consequently, the yearly health catastrophe surrounding Diwali would arise. Headlines would be dominated by the public outcry. On days when the pollution is too bad, schools might have to be closed. Although we haven't been able to solve this yearly dilemma yet, we haven't given up. Crop residue burning was outlawed and declared illegal. Since it was never practical to send farmers in significant numbers to prison, this provision was never fully implemented.

Removing the penalties for crop burning was one of the first concessions given to farmers during their protracted protests against the farm regulations.

Separately, the government chose to provide subsidies for the Happy Seeder, a device that increases soil nutrients by incorporating crop waste into the soil. Despite the significant government subsidies for these machines over the past few years and some effective marketing efforts, the majority of farmers still do not believe that the additional expense of burying the trash is beneficial and yields returns that are comparable with it. Should we give up and wait the several years it might take for the marketing campaigns to be successful? From everyone who is impacted by air pollution, the response would be an unequivocal no.

Another suggestion that keeps coming up is to change the cropping patterns. Given that rice farming uses more groundwater than the yearly replenishment from rainfall, this is unquestionably necessary. However, this would require considerably more work and time. Instead of promoting rice, an alternate cropping pattern that yields a higher return with minimum support price (MSP) would need to be encouraged. It will take some time for farmers and the political class to come to an agreement on this significant shift. This isn't the quick fix that's required to end the yearly problem with air pollution.

Pellets Derived From Crop Waste

The one method that has proven effective and is currently being explored is turning agricultural waste into pellets for burning in thermal power plants in place of some of the coal. This was carried out by NTPC, which also determined its technical viability. The power ministry has mandated that five percent of coal in thermal plants be replaced with pellets, with the goal of increasing this percentage to seven percent based on the successful experience. Theoretically, the issue might be resolved if all agricultural waste was converted into pellets and used in thermal power plants.

The problem is too big for its own good. This year, the province of Punjab alone is producing nearly 19 million tons of rice crop stubble, all of which needs to be turned into pellets. The annual health crises must be avoided by implementing the shift within a year or two. As things stand now, individual thermal plants are requesting bids for the pellet supply. The procedures involved in public procurement are time-consuming.

Should the lowest offer price differ for nearby facilities, as is expected to happen absent cartelization, contract awards may become challenging. It would be necessary for prospective bidders to estimate the cost of purchasing agricultural waste from farmers.

Farmers are logical economic agents, and they might demand a higher price if they discover that the winning bidder has a duty to fulfill under the terms of the contract. As a result, supply-side vulnerabilities arise. hauling crop trash would be significantly more expensive than hauling pellets, hence the most cost-effective way to convert crop waste is to do so in small plants close to the crop waste collection stations in a group of villages. The cost and difficulty of obtaining land would serve as a deterrent for prospective bidders.

Using MSP to Manage Crop Residue

Exists another path forward? Yes, there is. Punjab, like every other state, must approach the problem as if it were a war, with the special tools meant for times of emergency. The MSP strategy ought to be expanded to include the purchase of all crop waste at a fair price. It should make land available to private parties for the reasonable storage and conversion of agricultural waste into pellets in exchange for a licensing fee. It ought to fix the pellet pricing so that pellet-producing facilities may make a fair profit. This work may be made available to private players on a first-come, first-served basis. Additionally, it must be made sure that the labor is distributed fairly among willing participants. In order to save transportation expenses, pellets of this kind might be distributed as efficiently as possible across thermal plants in Northern India. Pellets would subsequently be supplied to thermal plants at a predetermined price. As is the case with coal, this expense would be passed through to the price of power. There would be no financial loss or government support for the entire process. All that would be needed is working capital, which the state would have to supply.

After Diwali, this strategy would save us from the yearly problem of air pollution in less than a year. States would have to take on responsibility, but, very differently from how they currently do so. The annual health crisis requires the states to think creatively and to the fullest extent possible. We won't be able to stop suffering without it.