Based on the passage below, evaluate whether the following statement is True or False.
Passage:
In recent years, several provincial governments have instituted Community-Led Groundwater Management (CLGM) frameworks to address severe aquifer depletion in semi-arid agricultural belts. Under this policy, local village councils are empowered to set crop-water budgets, mandate low-water-intensity crops during drought years, and monitor individual tube-well extraction rates. Early evaluation reports indicate that while village-level monitoring successfully curtailed over-extraction for cash crops like sugarcane, it also led to informal trading of extraction permits among wealthier farmers, inadvertently marginalizing smallholder farmers who lacked capital to buy extra water allocation. Furthermore, the framework relies heavily on voluntary compliance and local peer monitoring, which frequently breaks down in villages marked by deep-seated social hierarchies. Policy analysts argue that for CLGM to achieve equitable water sustainability, state intervention must extend beyond mere delegation of oversight; it must introduce mandatory state-enforced extraction ceilings alongside targeted subsidies for micro-irrigation technology specifically reserved for resource-poor landholders.
Statement:
Delegating groundwater management entirely to local village councils through voluntary compliance mechanisms, without mandatory state-enforced extraction caps, naturally guarantees equitable water allocation for resource-poor smallholders.
Answer: Answer