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Groundwater Marketing in Nalanda District of Bihar State: A Socio-economic Appraisal

Author

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  • Singh, Kumar Anish
  • Chaudhary, A.K.
  • Sinha, D.K.

Abstract

The cost and marketing of groundwater have been assessed in the Nalanda district, which is one of the most agriculturally advanced districts of the Bihar state. For the study, 60 farmers have been randomly selected from the district. It has been found that small and marginal farms use their tubewells mainly for hiring, whereas, large and medium farms use them mainly for their own purposes during the main crop seasons, i.e. kharif and rabi. The average installation cost on a tubewell has been found highest on large size of holdings (Rs 33,130), followed by medium (Rs 27,240), small (Rs 23,850), and marginal (Rs 19,610) holdings. The capital budgeting techniques, viz. net present value (NPV), benefit-cost ratio (B:C ratio) and internal rate of return (IRR) have been used for evaluating the investment on tubewells. The NPV has been found positive (Rs 1440) and B:C ratio more than one (1.05:1). The IRR has been estimated to be more than the capital cost (10.95%). But, the tubewells have failed to generate income flow equal to the investment by marginal farms. Farm size-wise analysis has revealed that the owner-seller farms category predominates in the water market in the study area. The participation in water market has been found to decline with increase in the size of farms. Financial analysis has revealed that the installation of tubewells is financially viable on large and medium farms but not on small and marginal farms. However, with the development of water market in the area, adoption of modern technologies in crop production and cultivation of cash crops would make the installation of tubewells on marginal and small size of farms financially viable.

Suggested Citation

  • Singh, Kumar Anish & Chaudhary, A.K. & Sinha, D.K., 2007. "Groundwater Marketing in Nalanda District of Bihar State: A Socio-economic Appraisal," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(2).
    • Handle: RePEc:ags:aerrae:47337
    DOI: 10.22004/ag.econ.47337
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    References listed on IDEAS

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    1. Ruth Meinzen-Dick, 1994. "Private Tubewell Development and Groundwater Markets in Pakistan: A District-level Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 857-869.
    2. Ruth Meinzen-Dick, 1993. "Performance of Groundwater Markets in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 833-845.
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    Cited by:

    1. Somnath Bandyopadhyay & Aviram Sharma & Satiprasad Sahoo & Kishore Dhavala & Prabhakar Sharma, 2021. "Potential for Aquifer Storage and Recovery (ASR) in South Bihar, India," Sustainability, MDPI, vol. 13(6), pages 1-10, March.
    2. Omvir Singh & Hawa Singh, 2015. "The response of farmers to the flood hazard under rice–wheat ecosystem in Somb basin of Haryana, India: an empirical study," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 75(1), pages 795-811, January.
    3. Vashishtha, P. S. & Singh, D., 2008. "Conflict and inequality in surface irrigation: a socio-ecological perspective," Conference Papers h042933, International Water Management Institute.

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