FUELING THE FUTURE OF RICE PRODUCTION: ECONOMIC INSIGHTS INTO SOLAR VS. DIESEL TUBE WELLS IN PUNJAB, PAKISTAN

Abstract

The rising diesel prices, along with the possibility of free solar energy, are modifying the water pumping for crops in Punjab’s rice belt. This study investigates the economic benefits, drivers and constraints of solar water pumping for tube wells in the rice–wheat system. The analysis uses data from 120 farmers: 60 who are pumping water with diesel and 60 who have installed solar photovoltaic water pumping systems in the districts of Gujranwala, Hafizabad and Sialkot. Statistical descriptors used to compare the costs and profitability. They were used by researchers to check which of the things matter while the adoption of solar ones. Perceived constraints of using solar tube wells can be ascertained by Likert-scale analysis. Solar irrigation brought about a saving of 37% in variable costs as the fuel cost is eliminated, the study reveals. Thus, the total cost of rice production of the solar water pump users was PKR 122,913 per acre, whereas it was PKR 165,022 of diesel users. The net income of the diesel users was PKR 27,491 per acre. The net income of the solar water pump users was PKR 67,635 per acre almost 2.5 times the net income of diesel users. The adoption of solar tube wells increased the benefit–cost ratio from 1.16 to 1.55. According to logistic regression model, as with Smallholders gain considerably from the economic advantages of tube wells based on PV. Nonetheless, constraints in finances and information are limiting factors for the adoption of these tubewells. Subsidy schemes and targeted financing are required to further promote the expansion of solar irrigation. In addition, the sustainable extension of solar irrigation in the rice sector of Pakistan should be strengthened.