IDEAS home Printed from https://ideas.repec.org/p/inf/wpaper/2015.03.html
   My bibliography  Save this paper

What Determines Farmers’ Decision to Buy Irrigation Water in Water Abundant Regions? A Study of Groundwater Markets in Assam in Eastern India

Author

Listed:
  • Jitu Tamuli

    (Tyagbir Hem Baruah College)

  • Mrinal Kanti Dutta

    (Indian Institute of Technology Guwahati)

Abstract

Development of groundwater based irrigation technology has resulted in emergence of groundwater markets in many parts of India. Due to the localised nature of these markets, the decision to buy water by farmers is influenced not only by factors such as capital scarcity, size of operational holdings, number of fragmented plots, availability of institutional credit etc. but also by location of the site. The present study is carried out to unearth the factors influencing water buying decisions of farmers under groundwater market in water abundant regions of India taking the case of Assam in eastern India. Using field data from two districts of the state and with the help of logit regression analysis, the study examines the determinants of water buying decision of farmers. The results have shown that large own farm size, access to institutional credit, age and better contact with extension agencies significantly reduce the probability of water buying decision of a farmer. For a tenant farmer, the probability of buying water is found to be higher. The study notes that groundwater market in the study area resembles most of the characteristics of water markets reported by studies from the water scarce regions of Asian counties. The results, on the whole, indicate that water buying decision of a farmer in water abundant regions is the result of a combined effect of a number of socio-economic, farm specific and tube well specific factors.

Suggested Citation

  • Jitu Tamuli & Mrinal Kanti Dutta, 2015. "What Determines Farmers’ Decision to Buy Irrigation Water in Water Abundant Regions? A Study of Groundwater Markets in Assam in Eastern India," Working Papers 2015.03, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2015.03
    as

    Download full text from publisher

    File URL: https://infer-research.eu/wp-content/uploads/2020/09/a73nklyvz9hjec8y3gc29lwphag0zyn91467809473.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kajisa, Kei & Sakurai, Takeshi, 2005. "Efficiency and equity in groundwater markets: the case of Madhya Pradesh, India," Environment and Development Economics, Cambridge University Press, vol. 10(6), pages 801-819, December.
    2. Satyasai, K.J.S. & Kumar, Praduman & Mruthyunjaya, 1997. "Terms of Transactions in Groundwater Markets: A Study in Anantapur District of Andhra Pradesh," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 52(4), December.
    3. Singh, D.R. & Singh, R.P., 2003. "Groundwater Markets and the Issues of Equty and Reliability to Water Access: A Case of Western Uttar Pradesh," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 58(01), March.
    4. Kajisa, Kei & Sakurai, Takeshi, 2003. "Determinants of Groundwater Price under Bilateral Bargaining with Multiple Modes of Contracts: A Case from Madhya Pradesh, India," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 5, pages 1-11.
    5. Palanisami, K. & Easter, K. William, 1991. "Hydro-Economic Interaction between Tank Storage and Groundwater Recharge," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 46(2), April.
    6. Hanan G. Jacoby & Rinku Murgai & Saeed Ur Rehman, 2004. "Monopoly Power and Distribution in Fragmented Markets: The Case of Groundwater," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 783-808.
    7. Deepak, S.C. & Chandrakanth, Mysore G. & Nagaraj, N., 2005. "Groundwater markets and water use efficiency: The case of Karnataka," Water Policy Research Highlights 43633, International Water Management Institute.
    8. Manjunatha, A.V. & Speelman, Stijn & Van Huylenbroeck, Guido & Chandrakanth, Mysore G., 2009. "Impact of groundwater markets in peninsular India on water use efficiency: A Data Envelopment Analysis approach," 2009 Conference, August 16-22, 2009, Beijing, China 50624, International Association of Agricultural Economists.
    9. Sharma, Purushottam & Sharma, R.C., 2006. "Factors Determining Farmers’ Decision for Buying Irrigation Water: Study of Groundwater Markets in Rajasthan," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(01), January.
    10. Dutta, Mrinal Kanti, 2012. "Institution of Ground Water Market for Management of Ground Water Resource: A Study from Assam in Northeast India," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124291, Australian Agricultural and Resource Economics Society.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manjunatha, A.V. & Anik, Asif Reza & Speelman, S. & Nuppenau, E.A., 2014. "Farmers’ Participation in Informal Groundwater Market in Hard Rock Areas of Peninsular India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(Conferenc).
    2. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2022. "Impact of water markets on equity and efficiency in irrigation water use: A systematic review and meta-analysis," Agricultural Water Management, Elsevier, vol. 259(C).
    3. Yashodha, Y., 2018. "Bargaining and Contract Choice: Evidence from Informal Groundwater Contracts," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276035, International Association of Agricultural Economists.
    4. Achiransu Acharyya & Madhusudan Ghosh & Rabindra N. Bhattacharya, 2018. "Groundwater Market in West Bengal, India: Does it Display Monopoly Power?," Studies in Microeconomics, , vol. 6(1-2), pages 105-129, June.
    5. Zhang, Lijuan & Wang, Jinxia & Huang, Jikun & Rozelle, Scott, 2008. "Development of Groundwater Markets in China: A Glimpse into Progress to Date," World Development, Elsevier, vol. 36(4), pages 706-726, April.
    6. Banerji, A. & Meenakshi, J.V. & Khanna, Gauri, 2012. "Social contracts, markets and efficiency: Groundwater irrigation in North India," Journal of Development Economics, Elsevier, vol. 98(2), pages 228-237.
    7. Acharyya, Achiransu, 2020. "Groundwater Market and Agricultural Tenancy: A New Form of Collective Inter-Linkage in West Bengal," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 4), December.
    8. Jayanath Ananda & Mohamed Aheeyar, 2020. "An evaluation of groundwater institutions in India: a property rights perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5731-5749, August.
    9. Siwan Anderson, 2011. "Caste as an Impediment to Trade," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 239-263, January.
    10. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.
    11. Michler, Jeffrey D. & Wu, Steven Y., 2020. "Governance and contract choice: Theory and evidence from groundwater irrigation markets," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 129-147.
    12. Michler, Jeffrey D. & Balagtas, Joseph Valdes, 2013. "The Determinants of Rice Storage: Evidence from Rice Farmers in Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150267, Agricultural and Applied Economics Association.
    13. Michler, Jeffrey D. & Wu, Steven, 2013. "Contracting for Groundwater Irrigation:A Principal-Agent Based Approach to Determining Contract Effectiveness," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149437, Agricultural and Applied Economics Association.
    14. Easter, K. William & Hearne, Robert R., 1994. "Water Markets And Decentralized Water Resources Management," Staff Papers 13864, University of Minnesota, Department of Applied Economics.
    15. Kristiana Hansen & Jonathan Kaplan & Stephan Kroll, 2014. "Valuing Options in Water Markets: A Laboratory Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(1), pages 59-80, January.
    16. Selvam Sekar & Jesuraja Kamaraj & Venkatramanan Senapathi & Chidambaram Sabarathinam & Prasanna Mohan Viswanathan & Sivakumar Karthikeyan, 2021. "Delineating saline and fresh water aquifers in Tuticorin of southern India by using geophysical techniques," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17723-17744, December.
    17. A.Banerji & Gauri Khanna & J.V. Meenakshi, 2006. "Markets, Institutions And Efficiency Groundwater Irrigation In North India," Working papers 152, Centre for Development Economics, Delhi School of Economics.
    18. Lijuan Zhang & Jinxia Wang & Guangsheng Zhang & Qiuqiong Huang, 2016. "Impact of the methods of groundwater access on irrigation and crop yield in the North China Plain," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(4), pages 613-633, November.
    19. Jean-Paul Azam & Jean-Daniel Rinaud, 2000. "Encroached Entitlements: Corruption and Appropriation of Irrigation Water in Southern Pun jab Pakistan)," Development Working Papers 144, Centro Studi Luca d'Agliano, University of Milano.
    20. Mohamed Salah Matoussi & Neji Saidi, 2014. "Financial Constraints Risk Aversion and Sharecropping in Rainfed Agriculture: Application to North West Tunisia," Working Papers 880, Economic Research Forum, revised Nov 2014.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inf:wpaper:2015.03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pedro Cerqueira The email address of this maintainer does not seem to be valid anymore. Please ask Pedro Cerqueira to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/inferea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.