Factors determining farmers’ decision for buying irrigation water: study of groundwater markets in Rajasthan.

Book Title: NA
Year Published: 2006
Month Published: NA
Author: Purushottam, Sharma ; Sharma, R. C.
Book Group Author: NA
Abstract:

This study was conducted in the arid zones of Rajasthan to understand the prevailing practice of groundwater marketing in the state. The specific objectives were: (i) to quantify the relative significance of important factors in the farmer's decision to buy irrigation water, using logistic regression analysis; (ii) to study the structure and conduct of groundwater markets in the study area; and (iii) to review the legal issues involved in water transfers and the policies related to groundwater development. It is shown that prevailing terms of water transactions, particularly 'in-kind' terms, lead to the over-exploitation of groundwater resources. The analysis of the farmers' decision to participate in water markets employing logit regression has suggested that farmers with more fragmented landholdings have a higher probability of buying groundwater. Joint ownership of wells is negatively associated with the farmers' probability of buying groundwater. This implies that consolidation of holdings or installing cooperative wells may economize the irrigation investment and lead to efficient management of the resources of the farmers and the sustainable utilization of water. The impact of groundwater markets on the small and marginal farmers and rural inequality in the long-run should become key points in formulating policies for the sustainable development and utilization of groundwater resources.

Pages: 39 - 56
URL: http://0-search.ebscohost.com.catalog.library.colostate.edu/login.aspx?direct=true&AuthType=cookie,ip,url,cpid&custid=s4640792&db=lah&AN=20083026266&site=ehost-live
Volume: 19
Number: 1
Journal: Agricultural Economics Research Review
Journal ISO: NA
Organization: NA
Publisher: NA
ISBN: NA
ISSN: 0971-3441
DOI: NA
Keywords:

decision making, groundwater, irrigation water, markets,purchasing, water use, India, Rajasthan, South Asia, Asia, DevelopingCountries, Commonwealth of Nations, India, choice, AgriculturalEconomics (EE110), Natural Resource Economics (EE115) (New March 2000),Soil Water Management (Irrigation and Drainage) (JJ800) (Revised June2002) [formerly Soil Water Management], Water Resources (PP200)

Source: EBSCO
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