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Eastern India and the Groundwater Paradox
                   Aditi Mukherji

   Presented at GWP South Asia Workshop, Colombo
                  February 25, 2011

      Based on synthesis of research since 2004
The irrigation story of India
                                               Private ownership
40000    Rapid rise
                                               On demand irrigation
35000    in GW
                                               Timeliness
30000    irrigation
                                               Adequacy
25000
                                               Flexibility
20000
15000
10000
5000
    0
        1951
        1953
        1955
        1957
        1959
        1961
        1963
        1965
        1967
        1969
        1971
        1973
        1975
        1977
        1979
        1981
        1983
        1985
        1987
        1989
        1991
        1993
        1995
        1997
        1999
        2001
        2003
        2005
        2007
              Canals   Tanks & other sources      Groundwater
Rising contribution of groundwater
                        60




                                                                                                       1970-73
% of Agricultural GDP




                        40




                        20

                                                                         BUT, depletion, scarcity
                                    0
                                                         1       21     and over-exploitation have
                                                                       41     61       81       101      121          141     161      181     201      221        241




                                                                       emerged as serious problems
                                                                                                        Districts


                                             60



                                                                                1990-93
                        Percentage to Agricultural GDP




                                             40




                                             20




                                                         0
                                                             1    21    41      61       81      101      121          141     161      181      201      221      241
                                                                                                          Districts


                                                                       % contribution of SWI to Agricultural GDP       % contribution of GWI to Agricultural GDP
The Problem Statement



Are depletion and scarcity the only reality?

Are there pockets of under-utilization?

    Can GW alleviate poverty in
         these regions? Indo-Gangetic basin
                    Eastern
                              has high
                             GW potential
Concentrated
Rural poverty
Leading to economic
scarcity of GW in a land
     of abundance
                           And dieselised
                           GW economy
                           “The energy squeeze”
Electricity subsidy as percentage of state fiscal deficits
Is low to non-existent in eastern India

                 Bihar
       West Bengal
   U.P (Power corp)
                                                Partly due to low
       Maharashtra                              number of electric
            Punjab                              tubewells
        Tamil Nadu
Rajasthan (Transco)
                                                But also high
         Karnataka                              tariffs
    Andhra Pradesh
            Gujarat
           Haryana
   Madhya Pradesh

                         0   20   40                60     80        100
                                       Percentage


BRISCOE, 2005,
Comparison of flat tariff in different states, 2006-07


              2500                                                           2160
              2000
 Rs/HP/Year




                                                               1512
              1500

              1000                              850
                               420
              500
                       0
                0
                     Punjab   Haryana         Gujarat       Uttarakhand   West Bengal
                                               States

                                     Flat rate tariff (Rs/HP/year)
West Bengal: A state that bucks the trend in
             GW and electricity
Punjab, Haryana, Gujarat,     West Bengal
Tamil Nadu
Over-exploitation of GW       Under- development of GW
                              (42% development)
> 60-80% electric pumps       < 20% electric pumps


Free/very low flat rate       Earlier highest flat rate in
                              India and now high
                              metered tariff
High fiscal deficits due to   Non-existent electricity
electricity subsidy           subsidy
Why is energy-irrigation nexus so different in
                   West Bengal?
   Highly restrictive groundwater policies
     The GW Act of 2005 and before that the SWID
      regulation of 1999 which stipulates that electricity
      connections cannot be given without certification by
      SWID
     Almost 50-60% rejection by SWID even in safe blocks

   High cost of pump electrification (USD 2000-
    3000) and long waiting period
   Political ecology: government dominated by urban
    intelligentsia, strong arsenic lobby and weak
    farmers lobby co-opted by the state
So what is happening on the agricultural front in
                West Bengal?
   Agricultural growth rate of around 1% and stagnation

   High period of agrarian growth in mid 1990s coincided
    with high GW use and increase in summer paddy

   The latest MI Census shows an absolute decline in
    number of WEMs and reduction in summer paddy (but
    the GoWB is changing these numbers, I was told)

   Declining quality of life , peasant unrest and Maoist threat
Are there physical constraints to GW development in West Bengal?



        Not really. Pre-monsoon
        decline in groundwater
        table is fully recovered
         during post monsoon
      season showing high actual
                recharge


                        As per the Ganges Water
                          Machine Hypothesis,
                         intensive GW use has
                          positive externalities




                                                                   12
Testing the Ganges Water Machine hypothesis using panel data

Data
• 16 years of groundwater level data from 403 monitoring wells (1990-1995)
                          For every one meter of
• Block level rainfall data from 1990-2005
                       additional drawdown in pre-
• Data on type of aquifer
                          monsoon season, post-
Regression specificationmonsoon recovery goes up
• Panel data with well level fixed effects
                                  by 0.85 m
• Keeps all time invariant factors (such as nature of aquifer) constant over time
• Exploits within-well variation

  recit   i  1 pre _ WDit   2 monsoon _ RFit  3nonmon _ RFit   4 LAG _ reci ,t 1   it
                      Far from negative “quantity”
                      externality, there are positive
------------------------------------------------------------------------------
positivere~y |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
                         externalities in terms of
-------------+----------------------------------------------------------------
  apriltable |   .8577282   .0145882    58.80   0.000     .8291239    .8863324
aprnovrain~l |       reduction of rejected recharge,
                 .0003465   .0000814     4.26   0.000      .000187     .000506
decmarchra~l |   .0019719   .0005453     3.62   0.000     .0009026    .0030412
                      lower .1539974 -20.47 cheaper -3.453918 -2.850009
       _cons | -3.151964    flood intensity, 0.000
-------------+----------------------------------------------------------------
                      alternative to surface storage
                                sigma_u | 1.7284553
                                sigma_e | 1.3200953
                  rho | .63159102    (fraction of variance due to u_i)
------------------------------------------------------------------------------
F test that all u_i=0:     F(323, 2913) =     9.86           Prob > F = 0.0000



                                                                                                     13
Predicted versus actual recovery: Shows good model fit

  Predicted recovery against pre-monsoon groundwater table at well-level
 20
 15




                                                                        Predicted recovery in post monsoon
                                                                        season
 10
  5
  0
 -5




      0                  10                   20                   30
                                  pre_wd




Actual recovery in post monsoon
season



                                                                                                             14
6 arguments as to why arsenic should not be an obstacle to intensive
    GW use in Bengal
•    Arsenic is a naturally occurring element in lower Ganga Basin. As soon as arsenic bearing layers
     are exposed to oxygen, they release arsenic into water. Shortthat
                       Linking these 6 arguments shows of total ban on groundwater use,
     nothing much discouraging GW use is counter-productive
                    that can be done about it
                     because in the absence of any other
• But then, GW is the only resource at disposal to farmers that allows them to intensify their
                  alternative sources of reliable irrigation&
  cropping system and make a living out ofthe regionland holdings. Ponds, tanks or canals does not
               livelihoods, farmers in stamp size will become
  allow for such intensification and are at best supplemental sources of irrigation
                      nutritionally poorer and even more
                       susceptible to arsenic poisoning.
•    Arsenic is a pre-dominantly drinking water problem and several cost effective solutions to mitigate
     this exists.
                The best anti-dote to arsenic is overall socio-
                 economic development. GW offers the best
• Limited and patchy evidence that arsenic is taken up by some leafy vegetables. Create awareness so
                hope for rapid agricultural and overall socio-
  that farmers do not use arsenic rich water for anything but paddy. Arsenic uptake by paddy grains is
  negligible and can be taken care of development in WB
                         economic by cooking

•    Finally, uptake of arsenic in human body is positively linked with poor
     nutritional status and providing nutritional supplements like folate is a better
     deterrent than blanket ban on groundwater

•    High agricultural growth is directly linked to poverty alleviation and better nutrition status. In
     Indian context, all states with high agrarian growth are also groundwater dependant


                                                                                                           15
Hi-Tech Metering Technology
              Tamper proof TOD meters
              Remotely read
              New law against
              tampering
              Reduces corruption
              collusion
Findings
Pump owners:
Largely winners
 Same hours of self
 pumping – Less
 electricity bill
 Less hour of selling
 water – Higher or same
 revenue
Higher bargaining
 power vis-à-vis water
 buyers
Win – win situation
Findings

Water buyers:
Losers




  Increase in water charges by 30-50%
  Lesser hours sold by pump owners
  Adverse terms & condition of buying water
3      Change in hours of pumping and water sold (2004 and 2010
       compared)
    Pump owners are pumping less and selling even less

    Type of WEM             Difference  in Difference in Difference
                            hours    Overall contraction in
                                        of hours of self in hours of
                            pumped irrigation economy of sold
                                           irrigation    water

    ES (N=41)
                                      West Bengal and it will
                               -1094.0 (44%)        -50.7    -776.9
                                           have negative
    EC (N=50)                    -636.6 (40%)      -154.5    -476.0
                                      livelihood implications
    DC (N=39)                      -75.1 (20%)                 -35.6           -36.4
    KC (N=4)                     -104.3 (23%)                  -48.7           -56.1


      All types of WEM owners are pumping less than before –
      the electric tubewell owners more so than the diesel and
      kerosene owners. Even more importantly, they are selling
      less than before. Overall contraction in pump rental
      markets and irrigation economy
    ES = Electric submersible; EC= Electric centrifugal, DC= Diesel centrifugal, KC = Kerosene centrifugal

                                                                                                             19
Findings
Groundwater
use efficiency:
Winner



   Increased adoption of plastic pipes for
   conveyance
   Better maintenance of field channels
  Construction of underground pipelines
  But will it save water? And is it important?
Explaining the GW paradox
        The political ecology perspective



Agrarian politics                  GW resources




                    GW policies
Policy recommendation
 Rapid electrification of tubewells to
 encourage competitive GW markets (Bihar?)
Relaxation on issuance of SWID certificate
 for new TW installation
Give capital cost subsidy for installation of
 tube wells – target small & marginal farmers
Panchayat (village council) intervention in
 regulating water prices if needed
Pilot a scheme of ICT enabled diesel
 subsidy voucher (a la Bangladesh)
Thank You
References
•   Mukherji, A; Villholth, K. G.; Sharma, Bharat R.; Wang, J. (Eds.) 2009. Groundwater
    governance in the Indo-Gangetic and Yellow River basins: realities and challenges.
    London, UK: CRC Press. Taylor and Francis group. 325p. (IAH Selected Papers on
    Hydrogeology 15)
•   Mukherji, A., B. Das, N. Majumdar, N.C. Nayak, R.R. Sethi and B.R. Sharma (2009),
    Metering of agricultural power supply in West Bengal, India: Who gains and who loses?
    Energy Policy: 37 (12): 5530-5539.
•   Mukherji, A. (2008), Spatio-temporal analysis of markets for groundwater irrigation
    services in India, 1976-77 to 1997-98, Hydrogeology Journal, 16(6): 1077-1087.
    Mukherji, A. (2007), „The energy-irrigation nexus and its impact on groundwater
    markets in eastern Indo-Gangetic basin: Evidence from West Bengal, India‟, Energy
    Policy, Vol. 35(12): 6413-6430.
•   Mukherji, A (2007), „Implications of alternative institutional arrangements in
    groundwater sharing: Evidence from West Bengal‟, Economic and Political Weekly, 42
    (26): 2543-2551
•   Mukherji, A. (2006), Political ecology of groundwater: The contrasting case of water
    abundant West Bengal and water scarce Gujarat, India, Hydrogeology Journal
    14(3):392-406.
•   Mukherji, A. & Shah, T. (2005). Groundwater socio-ecology and governance: a review
    of institutions and policies in selected countries. Hydrogeology Journal, 13(1): 328–345.
    ISI ranked.

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Eastern India and the Groundwater Paradox, by Aditi Mukherji

  • 1. Eastern India and the Groundwater Paradox Aditi Mukherji Presented at GWP South Asia Workshop, Colombo February 25, 2011 Based on synthesis of research since 2004
  • 2. The irrigation story of India Private ownership 40000 Rapid rise On demand irrigation 35000 in GW Timeliness 30000 irrigation Adequacy 25000 Flexibility 20000 15000 10000 5000 0 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Canals Tanks & other sources Groundwater
  • 3. Rising contribution of groundwater 60 1970-73 % of Agricultural GDP 40 20 BUT, depletion, scarcity 0 1 21 and over-exploitation have 41 61 81 101 121 141 161 181 201 221 241 emerged as serious problems Districts 60 1990-93 Percentage to Agricultural GDP 40 20 0 1 21 41 61 81 101 121 141 161 181 201 221 241 Districts % contribution of SWI to Agricultural GDP % contribution of GWI to Agricultural GDP
  • 4. The Problem Statement Are depletion and scarcity the only reality? Are there pockets of under-utilization? Can GW alleviate poverty in these regions? Indo-Gangetic basin Eastern has high GW potential
  • 6. Leading to economic scarcity of GW in a land of abundance And dieselised GW economy “The energy squeeze”
  • 7. Electricity subsidy as percentage of state fiscal deficits Is low to non-existent in eastern India Bihar West Bengal U.P (Power corp) Partly due to low Maharashtra number of electric Punjab tubewells Tamil Nadu Rajasthan (Transco) But also high Karnataka tariffs Andhra Pradesh Gujarat Haryana Madhya Pradesh 0 20 40 60 80 100 Percentage BRISCOE, 2005,
  • 8. Comparison of flat tariff in different states, 2006-07 2500 2160 2000 Rs/HP/Year 1512 1500 1000 850 420 500 0 0 Punjab Haryana Gujarat Uttarakhand West Bengal States Flat rate tariff (Rs/HP/year)
  • 9. West Bengal: A state that bucks the trend in GW and electricity Punjab, Haryana, Gujarat, West Bengal Tamil Nadu Over-exploitation of GW Under- development of GW (42% development) > 60-80% electric pumps < 20% electric pumps Free/very low flat rate Earlier highest flat rate in India and now high metered tariff High fiscal deficits due to Non-existent electricity electricity subsidy subsidy
  • 10. Why is energy-irrigation nexus so different in West Bengal?  Highly restrictive groundwater policies  The GW Act of 2005 and before that the SWID regulation of 1999 which stipulates that electricity connections cannot be given without certification by SWID  Almost 50-60% rejection by SWID even in safe blocks  High cost of pump electrification (USD 2000- 3000) and long waiting period  Political ecology: government dominated by urban intelligentsia, strong arsenic lobby and weak farmers lobby co-opted by the state
  • 11. So what is happening on the agricultural front in West Bengal?  Agricultural growth rate of around 1% and stagnation  High period of agrarian growth in mid 1990s coincided with high GW use and increase in summer paddy  The latest MI Census shows an absolute decline in number of WEMs and reduction in summer paddy (but the GoWB is changing these numbers, I was told)  Declining quality of life , peasant unrest and Maoist threat
  • 12. Are there physical constraints to GW development in West Bengal? Not really. Pre-monsoon decline in groundwater table is fully recovered during post monsoon season showing high actual recharge As per the Ganges Water Machine Hypothesis, intensive GW use has positive externalities 12
  • 13. Testing the Ganges Water Machine hypothesis using panel data Data • 16 years of groundwater level data from 403 monitoring wells (1990-1995) For every one meter of • Block level rainfall data from 1990-2005 additional drawdown in pre- • Data on type of aquifer monsoon season, post- Regression specificationmonsoon recovery goes up • Panel data with well level fixed effects by 0.85 m • Keeps all time invariant factors (such as nature of aquifer) constant over time • Exploits within-well variation recit   i  1 pre _ WDit   2 monsoon _ RFit  3nonmon _ RFit   4 LAG _ reci ,t 1   it Far from negative “quantity” externality, there are positive ------------------------------------------------------------------------------ positivere~y | Coef. Std. Err. t P>|t| [95% Conf. Interval] externalities in terms of -------------+---------------------------------------------------------------- apriltable | .8577282 .0145882 58.80 0.000 .8291239 .8863324 aprnovrain~l | reduction of rejected recharge, .0003465 .0000814 4.26 0.000 .000187 .000506 decmarchra~l | .0019719 .0005453 3.62 0.000 .0009026 .0030412 lower .1539974 -20.47 cheaper -3.453918 -2.850009 _cons | -3.151964 flood intensity, 0.000 -------------+---------------------------------------------------------------- alternative to surface storage sigma_u | 1.7284553 sigma_e | 1.3200953 rho | .63159102 (fraction of variance due to u_i) ------------------------------------------------------------------------------ F test that all u_i=0: F(323, 2913) = 9.86 Prob > F = 0.0000 13
  • 14. Predicted versus actual recovery: Shows good model fit Predicted recovery against pre-monsoon groundwater table at well-level 20 15 Predicted recovery in post monsoon season 10 5 0 -5 0 10 20 30 pre_wd Actual recovery in post monsoon season 14
  • 15. 6 arguments as to why arsenic should not be an obstacle to intensive GW use in Bengal • Arsenic is a naturally occurring element in lower Ganga Basin. As soon as arsenic bearing layers are exposed to oxygen, they release arsenic into water. Shortthat Linking these 6 arguments shows of total ban on groundwater use, nothing much discouraging GW use is counter-productive that can be done about it because in the absence of any other • But then, GW is the only resource at disposal to farmers that allows them to intensify their alternative sources of reliable irrigation& cropping system and make a living out ofthe regionland holdings. Ponds, tanks or canals does not livelihoods, farmers in stamp size will become allow for such intensification and are at best supplemental sources of irrigation nutritionally poorer and even more susceptible to arsenic poisoning. • Arsenic is a pre-dominantly drinking water problem and several cost effective solutions to mitigate this exists. The best anti-dote to arsenic is overall socio- economic development. GW offers the best • Limited and patchy evidence that arsenic is taken up by some leafy vegetables. Create awareness so hope for rapid agricultural and overall socio- that farmers do not use arsenic rich water for anything but paddy. Arsenic uptake by paddy grains is negligible and can be taken care of development in WB economic by cooking • Finally, uptake of arsenic in human body is positively linked with poor nutritional status and providing nutritional supplements like folate is a better deterrent than blanket ban on groundwater • High agricultural growth is directly linked to poverty alleviation and better nutrition status. In Indian context, all states with high agrarian growth are also groundwater dependant 15
  • 16. Hi-Tech Metering Technology Tamper proof TOD meters Remotely read New law against tampering Reduces corruption collusion
  • 17. Findings Pump owners: Largely winners  Same hours of self pumping – Less electricity bill  Less hour of selling water – Higher or same revenue Higher bargaining power vis-à-vis water buyers Win – win situation
  • 18. Findings Water buyers: Losers  Increase in water charges by 30-50%  Lesser hours sold by pump owners  Adverse terms & condition of buying water
  • 19. 3 Change in hours of pumping and water sold (2004 and 2010 compared) Pump owners are pumping less and selling even less Type of WEM Difference in Difference in Difference hours Overall contraction in of hours of self in hours of pumped irrigation economy of sold irrigation water ES (N=41) West Bengal and it will -1094.0 (44%) -50.7 -776.9 have negative EC (N=50) -636.6 (40%) -154.5 -476.0 livelihood implications DC (N=39) -75.1 (20%) -35.6 -36.4 KC (N=4) -104.3 (23%) -48.7 -56.1 All types of WEM owners are pumping less than before – the electric tubewell owners more so than the diesel and kerosene owners. Even more importantly, they are selling less than before. Overall contraction in pump rental markets and irrigation economy ES = Electric submersible; EC= Electric centrifugal, DC= Diesel centrifugal, KC = Kerosene centrifugal 19
  • 20. Findings Groundwater use efficiency: Winner  Increased adoption of plastic pipes for conveyance  Better maintenance of field channels Construction of underground pipelines But will it save water? And is it important?
  • 21. Explaining the GW paradox The political ecology perspective Agrarian politics GW resources GW policies
  • 22. Policy recommendation  Rapid electrification of tubewells to encourage competitive GW markets (Bihar?) Relaxation on issuance of SWID certificate for new TW installation Give capital cost subsidy for installation of tube wells – target small & marginal farmers Panchayat (village council) intervention in regulating water prices if needed Pilot a scheme of ICT enabled diesel subsidy voucher (a la Bangladesh)
  • 24. References • Mukherji, A; Villholth, K. G.; Sharma, Bharat R.; Wang, J. (Eds.) 2009. Groundwater governance in the Indo-Gangetic and Yellow River basins: realities and challenges. London, UK: CRC Press. Taylor and Francis group. 325p. (IAH Selected Papers on Hydrogeology 15) • Mukherji, A., B. Das, N. Majumdar, N.C. Nayak, R.R. Sethi and B.R. Sharma (2009), Metering of agricultural power supply in West Bengal, India: Who gains and who loses? Energy Policy: 37 (12): 5530-5539. • Mukherji, A. (2008), Spatio-temporal analysis of markets for groundwater irrigation services in India, 1976-77 to 1997-98, Hydrogeology Journal, 16(6): 1077-1087. Mukherji, A. (2007), „The energy-irrigation nexus and its impact on groundwater markets in eastern Indo-Gangetic basin: Evidence from West Bengal, India‟, Energy Policy, Vol. 35(12): 6413-6430. • Mukherji, A (2007), „Implications of alternative institutional arrangements in groundwater sharing: Evidence from West Bengal‟, Economic and Political Weekly, 42 (26): 2543-2551 • Mukherji, A. (2006), Political ecology of groundwater: The contrasting case of water abundant West Bengal and water scarce Gujarat, India, Hydrogeology Journal 14(3):392-406. • Mukherji, A. & Shah, T. (2005). Groundwater socio-ecology and governance: a review of institutions and policies in selected countries. Hydrogeology Journal, 13(1): 328–345. ISI ranked.