water tax on farmers

On 27-6-2025, the Ministry of Jal Shakti issued a clarification regarding the objectives of ‘Modernization of Command Area Development and Water Management (‘M-CADWM’) Scheme’. The scheme is designed to enhance irrigation efficiency, promote equitable water distribution, and encourage the integration of modern technologies such as pressurized pipeline networks, Internet of Things devices, and Supervisory Control and Data Acquisition systems for smarter, more transparent water management.

Despite these progressive steps taken, several media reports have raised concern across the farming community, suggesting that the Central Government intends to impose water user charges under the newly launched scheme, particularly impacting farmers’ pocket.

In response, Hon’ble Minister of Jal shakti, Shri C.R. Patil, as categorically rebutted these claims, stating:

There is no provision under the M-CADWM pilot project to impose water charges on farmers. The Centre has not issued any directive regarding such charges.

Government further clarified that any decision to levy user charges from Water User Associations (‘WUAs’) or scheme beneficiaries lies exclusively with the concerned State Governments, since both ‘agriculture’ and ‘water’ fall under the jurisdiction of the States as per the Constitution of India.

In the times when information spreads rapidly, the Ministry has urged all stakeholders to verify facts before reporting. Misleading or unverified stories can cause unnecessary fear and confusion, especially among vulnerable farming communities who stand to benefit most from this scheme. This official clarification was issued to ensure transparency and to counter misinformation surrounding one of India’s most progressive irrigation modernization initiatives.

What’s the M-CADWM Scheme?

Launched on April 9, 2025, the M-CADWM Scheme is a sub-scheme under the Pradhan Mantri Krishi Sinchayee Yojana. It aims to support farmers by upgrading outdated irrigation systems with underground pipelines and smart technologies to ensure more efficient water delivery to fields. With a budget allocation of ₹1,600 crore for FY 2024—25, the scheme marks a significant step toward modern, sustainable agriculture in India.

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