Improving Agricultural Efficiency Amongst Groundwater Users: The Case of Sugarcane in North India

Abstract

This paper estimates inequities in production and income for different categories of water users in the context of a rapidly depleting resource by estimating technical inefficiency using frontier techniques. The research is based on primary survey data from a North Indian village that shares characteristics commonly observed in other groundwater-dependant agricultural areas. Estimated technical efficiency scores are highest on plots where water is sourced from a privately owned tubewell, followed by plots serviced by partnered tubewells and lowest on plots where water is bought. Income gains from improved efficiency follow the reverse patterns with the largest gains of Rupees (Rs) 1082 per bigha1 estimated for buyers’ plots and Rs. 649 per bigha for plots with their own tubewell with the average of Rs. 867 for all plots. A policy package of improved power, joint ownership of tubewells, farmer training and better water transportation systems are prescribed as policy measures to alleviate the differences amongst water users.