ABSTRACT

In this chapter we use MuSIASEM to explore the metabolic pattern of rural Punjab, with a special focus on the economic viability and ecological feasibility of the specialization of its economy in food grain production. We show how remittances from abroad and subsidies from the central government tied to the National Food Security Bill maintain a relatively high per capita income and keep the metabolic pattern of the rural economy of Punjab viable. Relating monetary flows to water and soil use patterns, we find that the present system of subsidies for electricity and the minimum support price programme regulated by the central government are responsible for the progressive overdraft of aquifers and soil degradation.