Files
Abstract
The rights to groundwater belong to the landowner. Therefore, access to
this resource is privy to well-to-do farmers and is beyond the reach of
resource-poor farmers. The only option left with them is water markets.
The present study has aimed at understanding the operations of
groundwater markets in fragile conditions and has identified the losers
and gainers in the game of water markets in the long-run. It has been found
that water markets mitigate inequalities in accessibility to groundwater
resource in the short-run. But, faster and excessive use of groundwater
may increase inequity among the farming community in the long-run. In
water-scarce regions, water markets function on the principles of profit
maximization. The different strategies are adopted to make groundwater
available for sale. The water markets operate under monopsonic conditions.
The terms and conditions of groundwater markets, i.e. kind or cash, vary
differently across the regions. The study has suggested that water rights
should be redefined and nationalization of groundwater resource is the
only alternative for its sustainable management. To restrict the overexploitation
of aquifers, water trading should be allowed in a limited manner.
Programmes for recharging aquifer should be initiated on a large scale. A
community-based action is required for the efficient use of water resources
in water-scarce conditions through effective institutional arrangement.