Groundwater Marketing Dynamics in Northern Dry Zone Farms of Karnataka: A Comparative Study (2006 to 2021)

Groundwater is an essential resource, but it is becoming increasingly scarce and depleting rapidly, particularly in Karnataka. As a result, groundwater markets have emerged as an alternative strategy to manage this limited resource more efficiently and equitably. These markets enable farmers who cannot afford water extraction machinery to access irrigation. This article, aims to study present status of groundwater markets, temporal depletion of water table, groundwater security, economics and factors affecting water trade in Northern Dry Zone of Karnataka, mainly to compare with the results obtained in the past study [1] to analyze changes in scenario and have historical lessons. Multi-stage random sampling technique was used to select farmers, who were then categorized into water sellers, self-users, and buyers. Primary data was collected through a structured, pre-tested schedule and analysed using descriptive and logit regression analysis. Results show that unlike earlier study, buyers in present study owned wells. Depth of borewells has increased (overall 44%), resulting in increased drilling, deepening, and pumping costs. Very few farmers (8%) acknowledged over-extraction from their farms could also contribute to groundwater insecurity. While studying economics it was found that perennial crops had the highest economic rents (260, 610Rs/hr for sellers and buyers).Reason for participation in water market has shifted from no investment capacity to water scarcity compared to earlier study. So farmers could be motivated to participate in water markets instead of relying on new wells during water shortages to encourage optimal water use and reduce negative externalities like increasing wells.