Stubble Burning in India: Causes, Laws and Policy Solutions

Stubble Burning in India

Stubble Burning Latest News

  • Every year around this time, air pollution in North India, particularly Delhi, dominates public discourse. Stubble burning by farmers is one of the most cited reasons for the worsening Air Quality Index (AQI). 
  • Experts argue that the practice is not simply a farmer’s bad choice — it is the result of legal, technological and economic factors interacting together.

What Is Stubble Burning?

  • Stubble burning means setting fire to crop residue — the lower parts of plants left after harvesting. 
  • It is prevalent from early October to late November across northwest India, especially Punjab, Haryana, and parts of Uttar Pradesh. 
  • It is mainly associated with paddy straw, and Punjab and Haryana together produce around 29 million metric tons of it.

Why It Matters for Health and Soil

  • Releases large amounts of particulate matter, carbon monoxide, volatile organic compounds (VOCs), and other carcinogenic substances, forming a thick smog.
  • Causes loss of soil fertility by depleting nitrogen, sulphur, potash, phosphorus and other micronutrients.
  • The heat generated causes loss of soil moisture and organic content, which in turn increases fertiliser use in the next crop cycle.

Not A New Practice

  • Stubble burning has existed in Punjab since the late 1970s and early 1980s, following the introduction of combine harvesters, which leave plant residue behind. 
  • What has changed is its timing — now coinciding with winter months, following the enactment of the Punjab Preservation of Sub-Soil Water Act, 2009 (PPSSWA 2009).

The Water Crisis That Triggered a Law

  • In 2012, nearly 73% of Punjab’s cropped area was irrigated using groundwater. There was a deficit of 14.31 billion cubic metres, met through excessive groundwater withdrawal.
  • Groundwater levels in Punjab declined at an alarming 0.36 metres annually between 1999 and 2009.
  • A landmark NASA GRACE satellite study (2009) found the Punjab-Haryana-Rajasthan region lost 109 cubic kilometres of groundwater between 2002 and 2008 alone — then considered the largest groundwater depletion event in the world.

How PPSSWA 2009 Unintentionally Caused the Timing Shift

  • The Act aimed to prevent rapid groundwater depletion by prohibiting early paddy sowing and transplantation before the monsoon arrived.
  • Farmers were barred from sowing paddy before May 10 and transplanting before June 10. Stringent punishments were prescribed for this.
  • These sowing restrictions pushed the paddy harvest to late October/early November, leaving farmers just a 10–15-day window to prepare fields for wheat. 
  • The high-yielding PUSA-44 variety, which takes 150–160 days to harvest, narrowed this window further. Combine harvesters leave about a foot of stubble behind, and manual clearing is time-consuming and expensive. 
  • Together, these factors made stubble burning almost a necessity.

Why Farmers Keep Growing Paddy and Wheat Anyway

  • The deeper question: why do farmers persist with these crops despite strict laws and falling groundwater? The answer lies in the incentive structure.
    • Paddy procurement (2012–2024 average): 37% nationally, but 87% in Punjab and 74% in Haryana — more than double the national average.
    • Wheat procurement: 30% nationally, versus 70% in Punjab and 63% in Haryana.
      • These national averages already include Punjab and Haryana — excluding them would make the gap even starker.
  • This assured procurement provides guaranteed income, discouraging diversification. 
  • Additionally, power is free in Punjab and almost free in Haryana, further encouraging water-intensive paddy and wheat cultivation via groundwater extraction.

Technical Solutions and Their Limits

  • In-Situ Measures: Crop Residue Management (CRM) machines — Happy Seeders, Super Seeders, Rotavators; Short-duration rice varieties and direct seeding of rice.
  • Ex-situ Measures: Converting residue into bio-ethanol and compressed biogas.
  • The problem with both:
    • Happy Seeders/Super Seeders need an expensive 60-HP tractor, often idle for most of the year. Even hiring one costs ₹10,000 with a long waiting period.
    • Ex-situ measures cost ₹1,500–₹2,500 per acre — a significant expense for many farmers.

Policy Responses: Punjab vs Haryana

  • National Green Tribunal (2018): Ruled that farmers who burn stubble could be excluded from MSP policy. The Supreme Court upheld this in 2023.
  • In 2025, CPCB deployed 31 flying squads across 18 districts of Punjab and 13 of Haryana, involving 10,500 field functionaries in Punjab and 10,000 in Haryana.
  • CAQM has directed complaints to be filed against officials for inadequate monitoring.
  • However, the Parliamentary Committee on air quality recommended that penalising farmers should be a last resort, instead suggesting a minimum price covering all costs for selling stubble for ex-situ use.

Punjab’s Approach

  • Relied mostly on in-situ CRM-based measures, with limited ex-situ initiatives. 
  • CAQM noted in 2025 that Punjab still needs improvement in timely CRM machinery availability, support for CBG (compressed biogas) plants, and better enforcement.

Haryana’s Approach

  • Adopted an incentive-based model, aligned with the Parliamentary Panel’s recommendations:
    • ₹1,000/acre for CRM use.
    • ₹4,000/acre for direct seeding of rice.
    • ₹7,000/acre for diversification to alternate crops.
    • Additional incentives to panchayats for good performance.

The Measurement Problem

  • Punjab and Haryana reportedly achieved a 90% reduction in stubble-burning incidents during 2025 paddy harvesting compared to 2022. But this figure needs caution.

Why The Data May Be Misleading

  • The CREAMS protocol (Consortium for Research on Agroecosystem Monitoring and Modeling from Space) relies on NASA’s MODIS and VIIRS satellites — polar satellites observing India only between 10:30 am and 1:30 pm, capturing only active fires at that moment, not total fires over 24 hours.
  • A 2025 report, using multiple satellites, found the actual reduction was more gradual — around 30%, not 90%.
  • A November 2025 study, led by ISRO scientists, found farmers have shifted to burning stubble in the evening specifically to avoid polar satellite detection windows.

Conclusion

  • Stubble burning survives not because farmers lack alternatives, but because the system rewards exactly the behaviour it then punishes — assured procurement and free power push farmers toward paddy, while a water-conservation law compresses their harvest window to days. 
  • Haryana’s incentive-based model shows a more promising direction than Punjab’s penalty-heavy approach, but even the headline “90% reduction” may be a measurement artifact, not a real one. 
  • A lasting fix needs genuine crop diversification, better residue economics, and satellite monitoring that farmers can’t simply outrun by burning after dark.

Source: TH | CEEW

Stubble Burning FAQs

Q1: Why does stubble burning continue despite government restrictions?

Ans: Stubble burning persists because assured paddy procurement, subsidised electricity, expensive residue-management machinery and limited time between paddy harvesting and wheat sowing reinforce the practice.

Q2: How did the Punjab Preservation of Sub-Soil Water Act affect stubble burning?

Ans: The 2009 Act delayed paddy sowing to conserve groundwater, pushing harvesting into late October and narrowing the window for wheat preparation, increasing stubble burning.

Q3: How does stubble burning affect human health and soil fertility?

Ans: Stubble burning releases particulate matter, carbon monoxide and other harmful substances, while depleting soil nutrients, moisture and organic content, potentially increasing fertiliser requirements.

Q4: How do Punjab and Haryana differ in addressing stubble burning?

Ans: Punjab has relied mainly on in-situ residue-management machinery, whereas Haryana offers financial incentives for machinery use, direct rice seeding and diversification into alternative crops.

Q5: Why might reported reductions in stubble burning be misleading?

Ans: Satellite monitoring captures active fires during limited daytime observation windows, potentially missing evening burning and overstating reductions in actual stubble-burning incidents.

PERM Suspension: Why the US Targeted Indian IT Firms

PERM Suspension

PERM Suspension Latest News

  • The US government has suspended several large Indian IT firms (Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini) from a key programme that lets skilled foreign workers gain permanent residency, citing alleged fraud and claiming foreign workers took jobs at the cost of American workers.
  • This is a major blow for Indian professionals looking to work at these companies in the US. Last month, the US had already announced Cognizant’s suspension, without specifying the allegations, the number of applications affected, or the duration.

Part of a Broader Crackdown

  • This action represents a clear broadening of the crackdown on foreign workers that has become central policy under President Donald Trump. 
  • Technology and IT services companies face particularly heightened scrutiny over their reliance on foreign workers.
  • US authorities have stepped up investigations into alleged misuse of both the H-1B and PERM programmes, including claims of:
    • Wage undercutting
    • Fraudulent filings
    • Displacement of American workers
  • This scrutiny matters enormously for Indian professionals, who account for a large share of H-1B beneficiaries and employment-based Green Card applicants.
  • The US administration’s core justification is that foreign workers hired by these companies reduced job opportunities for Americans.
    • As per a report, since 2009, the impacted companies have requested permanent residency for almost 3 million foreign workers, receiving over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
    • The US administration characterised this as hundreds of thousands of jobs that were taken from American workers.

Understanding PERM: The Programme at the Centre of This

  • PERM (Program Electronic Review Management) is the system through which employers generally obtain labour certification before sponsoring a foreign employee for an employment-based Green Card.

Key Features

  • Unlike a visa application (made primarily by an individual), PERM filing is done by the employer on behalf of the worker.
  • Before filing, the employer must obtain a prevailing wage determination for the position and carry out prescribed recruitment.
  • The process is meant to establish that permanently hiring a foreign worker will not adversely affect job opportunities, wages, or working conditions of US workers.
  • Once the Labour Department certifies the application, the employer can proceed to the next stage of the Green Card process.

PERM vs H-1B — An Important Distinction

  • H-1B is a temporary, non-immigrant work visa allowing US employers to employ foreign professionals in specialty occupations.
  • PERM is part of the process for obtaining permanent residency — a fundamentally different track.

How This Affects Indian Workers

  • For employees whose Green Card process hasn’t yet reached the PERM filing stage: The immediate consequence is delay. 
    • They cannot make fresh PERM filings while the suspension is in place.
    • This means they cannot secure a priority date or begin moving through the employer-sponsored Green Card process.
  • Why This Hits Indians Especially Hard: India already faces a severe backlog.
    • In the US State Department’s September 2026 Visa Bulletin, the EB-2 category (Employment-Based Second Preference) for India was listed as “unavailable” for final action.
    • The EB-3 final-action date was January 1, 2014 — meaning applicants from over a decade ago are still being processed.
    • The system also imposes per-country limits on employment-based Green Cards, disproportionately affecting high-demand countries like India.

An Additional H-1B Complication

  • US rules allow certain H-1B holders to extend their stay beyond the normal six-year limit if a labour certification was filed sufficiently early. 
  • For workers approaching this six-year deadline, being unable to start the PERM process could become a serious problem.
  • Workers who already have approved petitions and are merely waiting because a Green Card number is unavailable are in a different position — they can, subject to rules, still qualify for H-1B extensions of up to three years at a time.

Conclusion

  • The PERM suspension doesn’t cancel existing Green Card queues, but it freezes new entries into them — and for Indian applicants already facing a decade-plus backlog, a freeze functions much like a setback. 
  • Framed by Washington as closing a fraud loophole, the move lands squarely on the companies and workers most dependent on this pathway: Indian IT professionals, for whom the priority date is often the only thing standing between temporary status and permanent residency.

Source: IE | FP

PERM suspension FAQs

Q1: What is the PERM suspension affecting Indian IT firms?

Ans: The PERM suspension prevents affected companies from filing new labour-certification applications, delaying the employer-sponsored Green Card process for eligible foreign employees.

Q2: What is PERM, and how does it differ from an H-1B visa?

Ans: PERM is an employer-led labour-certification process for permanent residency, whereas H-1B is a temporary work visa for foreign professionals in specialty occupations.

Q3: Why does the PERM suspension particularly affect Indian professionals?

Ans: The PERM suspension compounds India's existing Green Card backlog, with the article reporting unavailable EB-2 final action and an EB-3 date of January 1, 2014.

Q4: How does the PERM suspension affect workers approaching the H-1B six-year limit?

Ans: Workers nearing the six-year H-1B limit may face difficulties because delayed labour certification can prevent them from qualifying for certain extensions beyond the normal limit.

Q5: Does the PERM suspension cancel existing Green Card applications?

Ans: No, the PERM suspension does not cancel existing Green Card queues; it freezes new entries into the affected process, delaying progress for prospective applicants.

GST Reforms 2026 – Easier Compliance, Faster Refunds and Reduced Prosecution Risks

GST Reforms 2026

GST Reforms 2026 Latest News

  • The 57th meeting of the Goods and Services Tax (GST) Council recommended major process reforms to simplify compliance, accelerate refunds, reduce litigation-related burdens and improve certainty for businesses.

Background: From Rate Rationalisation to Process Reforms

  • The GST Council’s September 2025 exercise focused on rationalising tax rates on goods and services. 
  • Its latest meeting, held in October 2026, shifted attention towards simplifying procedures, improving taxpayer experience and reducing compliance-related friction.
  • Union Finance Minister Nirmala Sitharaman stated that most GST-related issues concerning rates and processes had been addressed, while leaving the possibility of further reforms open.
  • No GST rate changes were made at this meeting. The Council indicated that rate decisions would generally be considered annually and implemented from the beginning of the subsequent financial year.

Faster Refunds and Improved Working Capital

  • One of the most significant reforms concerns the processing of GST refunds and accumulated Input Tax Credit (ITC).
  • System-based refund processing
    • The Council recommended a system under which 90% of eligible refund claims would be sanctioned automatically within three working days of acknowledgement, compared with the earlier seven-day timeline for most refunds.
    • Refund acknowledgement is also proposed within 10 days, compared with the existing 15 days.
  • Refunds under the inverted duty structure
    • An inverted duty structure arises when the tax rate on inputs is higher than the tax rate on the final output, resulting in accumulated ITC.
    • The Council recommended widening refund eligibility to include:
      • Input services: The change can be availed from November 1, 2026.
      • Capital goods: Refunds relating to eligible capital goods, such as plant and machinery, will be spread over 60 months, with the change scheduled to take effect from April 1, 2027.
    • These measures are expected to benefit sectors such as FMCG, pharmaceuticals and food processing, where accumulated tax credits can constrain working capital.

Simplified GST Registration and Returns

  • The Council recommended improvements to registration procedures, including greater certainty about the documents required.
  • According to the government, 61% of taxpayers already receive automatic registration within three working days. The upgraded system is intended to simplify the process for remaining low-risk applicants by reducing unnecessary queries and rejections.
  • Other proposed measures include:
    • Simplified registration for small suppliers selling through e-commerce platforms.
    • Easier amendments and cancellations of registrations.
    • An option for small e-commerce sellers to register in a single State rather than in every State where they sell goods.
    • An optional annual return-filing scheme for businesses with turnover up to Rs. 5 crore that supply directly to consumers.
  • The annual return-filing scheme has received in-principle approval, but the Council will consider the final decision at a subsequent meeting.

Changes to Arrest and Prosecution Provisions

  • The Council recommended removing the arrest powers of GST officers and increasing the prosecution threshold from Rs. 1 crore to Rs. 5 crore.
  • The stated objective is to distinguish more clearly between tax-related disputes and conduct involving criminality.
  • The Finance Minister emphasised that prosecution should follow the establishment of a prima facie criminal case rather than an officer making an arrest merely in anticipation of possible wrongdoing.
  • The Council also recommended reducing the maximum general penalty from Rs. 25,000 to Rs. 10,000.
  • For non-fraud cases, it recommended a lower penalty of 5% and removal of the minimum penalty requirement of Rs. 10,000.

Greater Safeguards for Inter-State Goods Movement

  • The Council recommended restrictions on the interception and inspection of goods moving between States.
  • Under the proposed framework, vehicles carrying goods may be stopped only by tax officers of the supplier State or recipient State, and not by officers of an intermediate State. 
  • Interception would require:
    • Specific intelligence
    • Due authorisation by an officer at Joint Commissioner level
    • The objective is to prevent arbitrary checks and detention of goods during inter-State transportation
  • Such safeguards can improve logistics efficiency, reduce delays and strengthen the predictability of supply chains.

Faceless Assessment and Digital Tax Administration

  • Separately, the Union government announced plans to introduce faceless assessment for Central GST taxpayers registered in multiple States.
  • A framework is to be issued for public consultation before Budget 2027, with implementation planned during 2027-28.
  • Faceless assessment can reduce direct interactions between taxpayers and assessing officers, potentially improving consistency and limiting opportunities for discretionary action.

Relief for Service Exports and E-Commerce

  • Export of services
    • The Council recommended aligning GST treatment with established business practices for services supplied through overseas branches. 
    • The changes are intended to enable qualifying transactions to receive export treatment where the relevant conditions are met.
    • This is significant because services exports are an important source of foreign exchange for India.
  • E-commerce delivery services
    • The Council clarified that delivery services provided by unregistered riders through e-commerce platforms would attract GST at 5%.
    • The clarification seeks to reduce differences in tax treatment arising from different contractual arrangements, so that the tax treatment reflects the service actually delivered.

Source: TH | IE

GST Reforms 2026 FAQs

Q1: What was the main focus of the GST Council’s 57th meeting?

Ans: The meeting focused on process reforms, including easier compliance, faster refunds, reduced litigation-related burdens and improved certainty for businesses.

Q2: What change was recommended in the GST prosecution threshold?

Ans: The Council recommended increasing the prosecution threshold from Rs. 1 crore to Rs. 5 crore.

Q3: How will the proposed GST refund reforms help businesses?

Ans: Faster refund processing and wider ITC refund eligibility can release working capital that would otherwise remain locked in accumulated tax credits.

Q4: What is an inverted duty structure?

Ans: An inverted duty structure occurs when the GST rate on inputs is higher than the rate on the final output, leading to accumulated input tax credit.

Q5: What is faceless GST assessment?

Ans: Faceless GST assessment is a proposed system for conducting assessments digitally with reduced direct interaction between taxpayers and assessing officers.

Enquire Now