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Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India

Author

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  • Durba Biswas

    (Ashoka Trust for Research in Ecology and the Environment (ATREE), Royal Enclave, Sriramapura, Jakkur Post, Bangalore 560 064, Karnataka, India)

  • L. Venkatachalam

    (Madras Institute of Development Studies (MIDS), 79, II Main Road, Gandhi Nagar, Adyar, Chennai 600 020, Tamil Nadu, India)

Abstract

In principle, the approach toward irrigation management in India has gradually shifted from a government-dominated, supply-side paradigm toward a user-preferred, demand-side paradigm. Yet, decisions regarding water allocation and irrigation charges do not adequately incorporate farmers' preferences and their willingness-to-pay (WTP) for improved irrigation. Since public investment on irrigation projects is sizeable and the opportunity cost of irrigation water is increasing, there exists a need to estimate the economic value of irrigation water in order to utilize it in an efficient manner. This paper presents results of a contingent valuation (CV) study conducted in a semi-arid region, namely, the Malaprabha Irrigation Project in Karnataka, India, which elicited farmers' preferences and their WTP value for improved irrigation. The results suggest that farmers predict a significant increase in agricultural benefits due to additional irrigation and they are willing to pay significantly higher than what they are currently paying to secure these benefits. It implies that improved irrigation increases not only the farmers' benefits but could potentially increase the government's revenue, resulting in a win–win outcome.

Suggested Citation

  • Durba Biswas & L. Venkatachalam, 2015. "Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-24.
    • Handle: RePEc:wsi:wepxxx:v:01:y:2015:i:01:n:s2382624x14500040
    DOI: 10.1142/S2382624X14500040
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    References listed on IDEAS

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    10. Durba Biswas & L Venkatachalam, 2010. "Institutions and their Interactions: An Economic Analysis of Irrigation Institutions in the Malaprabha Dam Project Area, Karnataka, India," Working Papers 250, Institute for Social and Economic Change, Bangalore.
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    Cited by:

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    2. Agerie Nega Wassihun & Yitayew Malede Nega & Wuletaw Mekuria Kebede & Elleni Ewonetu Fenta & Asrat Akele Ayalew, 2022. "Smallholder households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia," Letters in Spatial and Resource Sciences, Springer, vol. 15(1), pages 79-98, April.
    3. Alemu Mekonnen & Zenebe Gebreegziabher & Abebe D. Beyene & Fitsum Hagos, 2019. "Valuation of Access to Irrigation Water in Rural Ethiopia: Application of Choice Experiment and Contingent Valuation Methods," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-26, September.
    4. Dimitra Lazaridou & Anastasios Michailidis & Konstantinos Mattas, 2019. "Evaluating the Willingness to Pay for Using Recycled Water for Irrigation," Sustainability, MDPI, vol. 11(19), pages 1-8, September.
    5. Kidane, Tesfai T. & Wei, Si & Sibhatu, Kibrom T., 2019. "Smallholder farmers’ willingness to pay for irrigation water: Insights from Eritrea," Agricultural Water Management, Elsevier, vol. 222(C), pages 30-37.
    6. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2023. "Are farmers willing to pay for groundwater irrigation? Insights from informal groundwater markets in Western Uttar Pradesh, India," Agricultural Water Management, Elsevier, vol. 288(C).
    7. Biswas, Durba, 2015. "Anchoring Effect in Context of a Familiar Good: A Case Study of Irrigation Water Supply in Rural India," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(4), pages 91-98, December.
    8. Girma T. Kassie & Hasan Boboev & Ram Sharma & Akmal Akramkhanov, 2021. "Willingness to Pay for Irrigation Services in the Cold Winter Deserts of Uzbekistan," Sustainability, MDPI, vol. 14(1), pages 1-15, December.
    9. Deh-Haghi, Zoherh & Bagheri, Asghar & Fotourehchi, Zahra & Damalas, Christos A., 2020. "Farmers’ acceptance and willingness to pay for using treated wastewater in crop irrigation: A survey in western Iran," Agricultural Water Management, Elsevier, vol. 239(C).

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