India, Pakistan, Bangladesh, and Nepal are the world’s largest users of groundwater. Groundwater use here is vital for agricultural growth, food security, and rural livelihoods, particularly for smallholder farmers who dominate agriculture. However, widespread subsidies on energy, diesel and electricity, and the absence of direct pricing for water have created what recent research calls a conundrum.Put differently, these subsidies make irrigation affordable for poor farmers, but they also encourage the excessive removal of groundwater, thereby causing financial stress on utilities and long-term threats to sustainability.
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