Journal article

Publication year: 2014

Pages: 45-54

Journal: Agricultural Economics Research Review

Volume number: 27

Issue number: Conf

ISSN: 0971-3441

DOI Link: https://doi.org/10.5958/0974-0279.2014.00006.8

Publisher: Agricultural Economics Research Association (India)

Abstract: 
This paper has analysed the factors that influence farmers’ participation in the informal groundwater
market using the Cragg’s double hurdle model. For the study, primary data from 171 groundwater farmers
belonging to the Eastern Dry Zone of Karnataka were used. The empirical results have shown that
agricultural credit and farmers having failed wells positively influence farmers’ probability of water
buying. With increasing water cost, the farmers are more likely to purchase or sell water and the quantity
of water purchased or sold decreases with the increase in irrigation cost. The well-owners who have drip
irrigation and land fragments are more likely to sell water. It has been observed that in the study area
farmers purchase water at high prices and hence an effective agricultural water pricing is needed. Another
option could be to promote joint investment in irrigation which takes care of credit problems and negative
externalities of overdraft, resulting in efficient use of resources.

Harvard Citation style: Manjunatha, A., Anik, A., Speelman, S. and Nuppenau, E. (2014) Farmers’ Participation in Informal Groundwater Market in Hard Rock Areas of Peninsular India, Agricultural Economics Research Review, 27(Conf), pp. 45-54. https://doi.org/10.5958/0974-0279.2014.00006.8

APA Citation style: Manjunatha, A., Anik, A., Speelman, S., & Nuppenau, E. (2014). Farmers’ Participation in Informal Groundwater Market in Hard Rock Areas of Peninsular India. Agricultural Economics Research Review. 27(Conf), 45-54. https://doi.org/10.5958/0974-0279.2014.00006.8