ABSTRACT
The rise in diesel price might affect the diesel well owners and water buyers in diesel well commands in different ways. It is hypothesized that increase in cost of diesel would encourage farmers to use water and other inputs for crop and livestock production more efficiently; but they might also adopt high-valued crops that require more water, to sustain the net returns from crop production. The electric well commands are located in the flood plains of the river, with high soil moisture content and fertile soils. These reduce not only the irrigation water requirement of the crops, but also the need for fertilizer inputs, minimizing the input costs. The Indo-Gangetic basin is the largest carbon footprints because of the burning of fossil fuel for running around 4 million diesel engines. Heavy subsidies for diesel used in the farm sector in shallow groundwater areas would also cause damage to agricultural economy and energy economy.
