Archive · 30 Dec 2025
India's Rice Trade Expansion Fuels Water Crisis
India is the world's biggest rice producer and exporter, but growing so much rice is causing a big problem.
Rice needs a lot of water, and farmers are using up groundwater faster than it can be replaced.
This is making it harder and more expensive for farmers to get water for their crops.
The government gives farmers money to grow rice, which makes the problem worse.
Some farmers want to switch to crops that need less water, but the government needs to make it worth their while.
If India doesn't find a solution, it could have big effects on the global rice market.
India has become the world's largest rice producer and exporter, with shipments crossing 20 million metric tonnes in the latest fiscal year.
Rice farmers in Haryana and Punjab are facing a water crisis as groundwater levels drop, forcing them to drill deeper borewells.
Government subsidies for rice cultivation incentivize farmers to grow rice, despite its high water consumption.
The Indian government has started offering subsidies to encourage farmers to switch to less water-intensive crops like millets, but adoption has been slow.
Farmers are willing to switch crops if the government guarantees to buy their produce at support prices.
- Who
- Indian rice farmers, government officials, and farm scientists
- What
- India's rice production and export are causing a water crisis due to unsustainable groundwater extraction
- When
- The situation has worsened over the past decade, with significant acceleration in the last five years
- Where
- Primarily in the rice-basket states of Haryana and Punjab
- Why
- Government subsidies incentivize rice cultivation, leading to over-extraction of groundwater
- India's Rice Production
- World's largest producer, overtook China this year
- Rice Exports
- 20 million metric tonnes in the latest fiscal year
- Groundwater Depth
- Borewells now go between 80 and 200 feet, up from 30 feet a decade ago
- Government Subsidies
- State-guaranteed minimum price for rice increased by 70% over the past decade
- Water Consumption
- Producing 1 kg of rice consumes 3,000–4,000 litres of water
- Groundwater Extraction
- Punjab and Haryana extract 35-57% more groundwater annually than aquifers replenish
- Subsidy for Millets
- ₹17,500 per hectare offered by Haryana government to switch to millets
- Farmers' Willingness
- Farmers willing to switch crops if government buys produce at support prices
