Journal <strong>of</strong> <strong>Rural</strong> <strong>Development</strong>, Vol. 32, No. (1) pp. 75 - 85NIRD, Hyderabad.ECONOMIC IMPACT OF WATERMANAGEMENT : A CASE STUDYArijit Roy*ABSTRACTWater is commonly regarded as plentiful, especially in the medium to highrainfall areas. But water is not equally distributed over the earth’s surface. Theincreasing uncertainty over rainfall is hampering the normal economic activitiesespecially agriculture. In rural West Bengal, man-made “chowka” is a beautifulexample <strong>of</strong> water harvesting structure acting as lifeline to farmers during the dryseason and minimising the risk <strong>of</strong> water-logging during uncommon heavy rainfall.This paper attempts to assess the economic impact <strong>of</strong> water management practicesin a medium rainfall area in West Bengal. Also the effects <strong>of</strong> land size, expenditure oninputs and the role <strong>of</strong> panchayat are taken into account. The impact is evaluated interms <strong>of</strong> cropping pattern, productivity, income, employment, and household assets.The study reveals that the overall impact is positive and significant, and hence, itdemands a systematic and well-organised planning-execution approach to watermanagement projects.IntroductionIn high and medium rainfall areas, rainwateracts as the predominant input inagriculture. However, the uncertainty overrainfall in recent years is becoming a stumblingblock. Farmers are exploring alternativesources <strong>of</strong> water. Here comes the significance<strong>of</strong> water resource management – to explorenew sources <strong>of</strong> water, to store water, tominimise water use for maximum output andto minimise water leakages and losses. Theinland small and medium scale agriculturemay find surface and groundwater as viablealternatives. However, groundwater extractionusing shallow pumps are prohibited indifferent areas for various reasons. So thesmall and medium farmers fall back heavilyon surface water resources. But very <strong>of</strong>ten,farmers are unaware or simply not interestedto collect surface water, even when there isno pond or water-body nearby. The theory,process and benefit <strong>of</strong> rain and surface waterharvesting is a new topic to many <strong>of</strong> them. Butsurface and rain-water harvesting in differentstructures within the landholding maycontribute significantly to the agriculturalproductivity and income <strong>of</strong> small and mediumfarmers.Pereira, H.C. (1973) has rightly pointedout that “the arable croplands carry the majorburden <strong>of</strong> sustaining human food needs. Thedifficulties in farming them increase with* Assistant Pr<strong>of</strong>essor in Economics, Department <strong>of</strong> Commerce, V.M. Mahavidyalaya, Chaitanyapur, EastMidnapore, West Bengal - 721645. E-mail : aroy2003@gmail.comThe author is grateful to Dr. Madhusudan Datta for serious discussion and comments on the paper.
76 Arijit Royincreasing temperature and the decliningamount and reliability <strong>of</strong> rainfall “ and it is inthis context that “small –scale water harvestingtechniques are being studied afresh in Indiatoday” . He has also pointed out that “Tying <strong>of</strong>ridges and structures <strong>of</strong> water harvestingimprove rainfall penetration, increase cropgrowth and decrease soil erosion”. Dikshit, G.S.,Kuppuswamy, G.R. and Mohan, S.K. (1993) haveshown the significance <strong>of</strong> small reservoirs inthe context <strong>of</strong> water management practicesin India from ancient to current period andanalysed the structural, financial andinstitutional aspects <strong>of</strong> small reservoirs. SinghKatar (1994) finds that “tanks are still animportant and the least expensive means <strong>of</strong>storing rain water and using it for supplementalirrigation and other purposes in many parts <strong>of</strong>India”. He also points out that “ the outcomesand impacts <strong>of</strong> management <strong>of</strong> irrigation tankscould be seen in crop pattern, input use, yieldrates, net returns, economic viability <strong>of</strong> tankirrigation; and some intangible environmentalchanges”. Baumann, P. (1998) has analysed thecontribution <strong>of</strong> small reservoirs in the context<strong>of</strong> Panchayati Raj system in India. Goswami, S.(2006) has put forward an in-depth analysis <strong>of</strong>the practices and significance <strong>of</strong> tank irrigationin different parts <strong>of</strong> West Bengal. Nanda, P.,Panda, D.K., and Swain, M. (2008) have shownthe impacts <strong>of</strong> water harvesting measures interms <strong>of</strong> cropping pattern and productivity <strong>of</strong>crops, impact on household income andemployment, impact on employmentgeneration and so on in seven villages inDigapahandi block <strong>of</strong> Ganjam district <strong>of</strong> Odisha.Pal, R.C. and Prasad, R. (2008) have shown theeffects <strong>of</strong> water harvesting measures in sixvillages under the Rayachoty block <strong>of</strong> Kadapadistrict <strong>of</strong> Andhra Pradesh. The impacts uponthe standard <strong>of</strong> life including livestock, waterlevel in wells, change in cropping pattern,change in income generation activities,improvement in agriculture etc. are discussed.Although our central aim is to find theeconomic impacts <strong>of</strong> water harvestingJournal <strong>of</strong> <strong>Rural</strong> <strong>Development</strong>, Vol. 32, No. 1, <strong>January</strong> - <strong>March</strong> : <strong>2013</strong>structures, we can find the effect <strong>of</strong> farm sizeon productivity as well. Economic theoriesshow that the effects may be either positiveor negative. Productivity does depend on theexpenditure on inputs which may betraditional (less expensive) as well as modern(more expensive).Traditional inputs includelow yielding seeds, plough and bullock, cowdungand similar organic manure etc. whilethe modern inputs include high-yieldingvariety seeds, pesticides and chemicalfertilisers, tractors, power-tillers, pumpsets etc.Economic theory postulates a positiverelationship between expenditure on inputsand productivity, other things remaining thesame. Here, we are in a position to verify thisrelationship.Impact <strong>of</strong> local governmentorganisations like panchayat on productivityis expected to be positive. Panchayats providevarious inputs (seeds, fertiliser, irrigation etc.)and extension services (training, warehousing,marketing etc.) which are very much crucialfor higher productivity. Panchayats organisetraining camps and workshops to impart newknowledge to the farmers. They try to spreadawareness regarding the growing need, scopeand mechanisms for water harvesting andwater management. We also examine the role<strong>of</strong> panchayat in production and productivity<strong>of</strong> the farms.This paper, basically, attempts to evaluatethe economic impacts <strong>of</strong> simple rain-waterand surface water harvesting practices uponagricultural productivity and hence on thestandard <strong>of</strong> living <strong>of</strong> the farmers. However, theimpacts <strong>of</strong> land size, expenditure on inputsand role <strong>of</strong> panchayat are also taken intoaccount in this model. The economic impactsare evaluated in terms <strong>of</strong> differences inincome and assets, employment, croppingpattern, production and productivity <strong>of</strong>different crops.JRD 2 (1)
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