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REIMAGINING INDIA
Table-3: Details Of Availability And Requirement Of Water Resources In Gujarat
Details
Availability Of
Water (mcm)
Requirement Of
Water (mcm)
Surplus (mcm)
Deficit Of Water Resources
(mcm)
As Per The Year 2010
South Gujarat 24750 14390 10360 -
Saurashtra & Kachchh 9740 13100 - 3360 (34.49)
North Gujarat 10400 17400 - 7000 (67.31)
Total 44890 44890 10360 10360
As Per The Year 2025
South Gujarat 28187 15500 12687 -
Saurashtra & Kachchh 10170 14440 - 4269 (41.97)
North Gujarat 10212 18630 - 8418 (82.43)
Total 48570 48570 12687 12687
Source: NWR and WSD, Government of Gujarat
Note: figures in parentheses indicate the percentage shortage
likely that water will be one of the goods
that can be allocated using market forces.
At least in the case of markets for irrigation
water it appears that both formal and
informal systems of water system are at
work. In India, other than recent intervention
in Maharashtra, there is a dearth of
the experience of the formal market systems.
But numerous countries experience
with water markets are wide ranging, with
most of the formal water markets in North
and South America. For example in several
areas of Chile, the legalisation of water
trading and recording of water use
rights were sufficient to foster an active
formal water markets with relatively low
transaction costs. The combination of effective
water user association and well developed
irrigation infrastructure allowed
these farmers to easily trade water
throughout the system including trades
with the urban section (Hearne 1995).
Garrido (1997) shows the economic gains,
when trading is restricted to an individual
water district. In contrast, if trades are allowed
among communities that are subject
to different supply constraints and drought
conditions, the gains from trade can be
substantial. As per his estimates, inter
community trading results in 50 percent
gain. In their analysis of selected water
markets in Chile, Hearne and Easter
(1997) found trading both within and between
sectors. For permanent transactions,
they felt the importance of well defined
water use rights.
In the case of informal markets in Asia,
Shah (1993) finds that in areas with dependable
groundwater recharge, the selling
of tubewell water has benefited a wide
range of farmers by allowing them to increase
crop production and income.
Groundwater markets play a major role in
boosting agricultural production and returns
to farmers from crop production.
Saleth (1997) estimates that 20 percent of
14 million pump sets are likely to be involved
in water trading. This means that
water markets are providing water for
about 6 million hectares or 15 percent of
the total area irrigated by groundwater. In
Pakistan, 21 percent of the total area irrigated
is from groundwater. Meinzen-Dick
(1997) found that water markets increased
the availability of water and the reliability
of supplies. Study by Pathak (2007) showed
that with greater water supplies and reliability,
yield and returns increased for those
who purchased water particularly for those
who also had access to canal water. However,
the highest yields and income was
still found among farmers who owned
tubewells and had access to canal water.
Even though groundwater markets appear
to be growing rapidly and providing a more
assured source of water to many farmers,
a number of concerns have been raised
about the performance of informal water
markets. Some of the problems are the
following:
• high water demand and declining
groundwater level.
• water rights are not well defined.
• lead to over drafting of aquifers whichcauses
decline in groundwater supplies.
• potential for monopoly pricing and discrimination.
Conclusion
This paper shows that water markets have
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