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Economic Assessment of Irrigation Water markets in Tamil Nadu: Efficiency, Equity and Sustainability Perspectives
Dr.V.Raja Assistant Professor, PG & Research Department of Economics, Pachaiyappas College for Men, Kanchipuram.
Pages: 1-9 | First Published: 05 Jul 2024
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Abstract

Water is vital input in agriculture, especially in semi-arid regions such as Tamil Nadu, where irrigation plays a crucial role in sustaining agricultural productivity. In the absence of adequate public irrigation infrastructure, informal irrigation water markets have evolved as an alternative mechanism for water distribution among farmers. This paper provides a economic analysis of irrigation water markets in Tamil Nadu, examining their structure, functioning and implications for agricultural efficiency, equity, and sustainability. Using both primary and secondary data, the study explores the determinants of water pricing, the nature of market transactions, and the welfare effects on buyers and sellers. Results reveal that while water markets improve access to irrigation and reduce risk for smallholders, they are constrained by inequitable access, groundwater depletion, and lack of regulation. The study concludes with policy recommendations for strengthening institutional frameworks, promoting efficient water use, and integrating community-based management to ensure long-term water sustainability.

Keywords: Irrigation Water Market, Water Pricing, Groundwater, Agricultural Efficiency, Tamil Nadu and Sustainability

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