Groundwater Markets and Water Use Efficiency
The Case of Karnataka
S.C. Deepak, M.G. Chandrakanth and N. Nagaraj
This study, based on primary data collected from 120 groundwater users in eastern dry zone of Karnataka compares the water use efficiency among different categories of water users, viz. well owners who do not sell water, well owners who sell water either for agricultural or non-agricultural use and water buyers (both agricultural and non-agricultural). Some of the important findings are-• The cropping pattern varies between categories, with both the sellers and buyers preferring low water intensive mulberry crop, while the self user's category grew more water intensive crops.
• Farmers who sold water for non-agricultural purposes earned the highest return (because of higher end-use price) and also made the most efficient use of water. Thus, making a point that end-use pricing is a key in shaping marginal productivity of water.
• Compared to the self-users, farmers selling water for either agricultural or non-agricultural purposes realized higher marginal productivity. Thus, groundwater markets acted as an effective tool in enhancing efficient use of a scarce resource.
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