Current Science

Prem Chand ¹, Jitender Mohan Singh ², Jatinder Sachdeva ², Jasdev Singh ², Priyanka Agarwal ¹, Rajni Jain ¹, Sulakshana Rao ³, Baljinder Kaur ²

Affiliations
1 ICAR-National Institute of Agricultural Economics and Policy Research, DPS Marg, Pusa, New Delhi 110 012, India, IN
2 Department of Economics and Rural Sociology, Punjab Agricultural University, Ludhiana 141 027, India, IN
3 CHRIST University, Bannerghatta Main Road, Hulimavu, Bengaluru 560 076, India, IN

Abstract

Increasing global water shortage emphasizes the need for demand-side water management policies, especially in the agriculture sector, being the largest consumer of freshwater. Such policies are relevant in India, where groundwater depletion may have severe implications at various socio-economic levels. In this study, using mathe­matical modelling, we assess the feasibility of two alternative irrigation water pricing policies – (i) uniform water pricing policy and (ii) differentiated water pricing policy, wherein farmers growing less water-requiring crops (<4488 m3/ha) get an incentive for saving water, while those growing water-intensive crops pay for it. Using a case study of Punjab, the breadbasket and one of the fastest groundwater-depleting states in India, alternative cropping patterns are also suggested. The findings reveal that the current rate of groundwater withdrawal could not sustain agricultural intensification in the state. Although optimization of resource allocation has the potential to save water by 8%, this alone is unlikely to break the rice–wheat mono-cropping pattern in Punjab. The analysis of two different volumetric irrigation water pricing policies shows that differentiated water pricing would be more effective in halting groundwater depletion in the state. However, adequate investment in irrigation water supply infrastructure, mainly for installing water meters, is required to implement the policy

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