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Innovations in
    managing the
     agriculture-
 groundwater and
    energy nexus
Evidence from three
   states in India
  Aditi Mukherji, IWMI




                                                Photo Davidvan Cakenberghe/IWMI
                                                Photo: :Tom van Cakenberghe/IWMI
                                                        Tom Brazier/IWMI
                Water for a food-secure world
                         www.iwmi.org
The irrigation story of India….
           Since 1970s,
          groundwater
       irrigated area has
        increased, as has
      number of wells and
          tubewells….




        Water for a food-secure world
                www.iwmi.org
Water for a food-secure world
        www.iwmi.org
Water for a food-secure world
        www.iwmi.org
Water for a food-secure world
        www.iwmi.org
Water for a food-secure world
        www.iwmi.org
Rising contribution of groundwater in agriculture
 % of Agricultural GDP
                         60




                                                                                                        1970-73
                         40




                         20
                                                                     BUT, depletion, scarcity
                                                                    and over-exploitation have
                                    0
                                                                   emerged as serious problems
                         Percentage to Agricultural GDP




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


                                                 60



                                                                                                         2000-03
                                                 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
Leading to groundwater over-exploitation in many states……




                                   Districts depicted in red
                                   and yellow are the
                                   districts with over-
                                   exploitation problems
Growth in electricity consumption in agriculture has
         outpaced growth in other sectors
                             There has been 12 fold
                                increase in overall
                              electricity demand in
                            India from 1950 to 2010,
                              but 25 fold increase in
                              agricultural electricity
                                     demand




                Water for a food-secure world
                        www.iwmi.org
Electricity subsidy as percentage of state fiscal deficits is
very high in some states

               Bihar
       West Bengal                           Agriculture is often blamed for
    U.P (Power corp)                         poor state of electricity utilities
        Maharashtra
             Punjab
         Tamil Nadu
Rajasthan (Transco)
          Karnataka                                                Yet farmers receive
    Andhra Pradesh                                                 poor quality service
             Gujarat
            Haryana
   Madhya Pradesh

                       0               20   40                60           80             100
                                                 Percentage


BRISCOE, 2005, Data pertains to 2002
And requirement for subsidy keeps rising…




                      Net electricity
                    subsidy in India is
                  close to USD 9 billion
                   and is rising year by
                            year




Source: ICRA
Farmers get free or highly subsidized electricity in
 most states (though not all).


              2500                                                           2160
              2000
 Rs/HP/Year




                                                               1512
              1500
                                                850
              1000
                               420
              500
                       0
                0
                     Punjab   Haryana         Gujarat       Uttarakhand   West Bengal
                                               States

                                     Flat rate tariff (Rs/HP/year)


Even when farmers pay for electricity, they pay it on a flat tariff basis. Only
exception is the state of West Bengal where agricultural tubewells are
Metered and farmers pay a time of the day (TOD) tariff
But then, there is the energy divide: Farmers in eastern India depend
pre-dominantly on diesel pumps, while rest of India has electric pumps




                                                      So the food-
                                                         energy-
                                                    irrigation nexus
                                                    is also different
                                                     in east vs. rest
                                                         of India




                    Water for a food-secure world
                            www.iwmi.org
To sum up…what is this food-irrigation and energy
                    nexus?
• India’s irrigation sector is dependent on groundwater

• Much of this groundwater is pumped using electricity

• Groundwater use is more than sustainable recharge in most
  states leading to groundwater over-exploitation

• Electricity is subsidized in most (though not all) states

• This creates a nexus where one sector (agriculture) is
  dependent on unsustainable trends groundwater and
  electricity sectors
                    Water for a food-secure world
                            www.iwmi.org
The Food-Energy                                                   Support price policy/
                                                                    Assured market
                                                                   AGRICULTURE
Irrigation Nexus                                    Re-aligning food procurement
                                              Choice of crops
                                                                        Uncertain markets for
                                                                  policiesdiversification
                                                                         crop
                                                   Providing incentives to grow low
                                                             Agriculture
                                                        water consuming crops
                                                    Better field water management
                                                                techniques




                                                                                    Ene
                                                         ific er
                                                                  n




                                                                                       rgy
                                                             atio
                                                                t




                                                                                        Wa d Agr
                                                             wa




                                                                                           an
                                                        und




                                                                                           s ta
                                                      ers




                                                                                                ge/ cultur
                                                     Gro
                                                   div




                                                                                                   Mis
                                                                                                    i
                                                  ng
                                               op




                                                                                                      dire Subsi
                                             leti

                                                                        Water-
                                           f cr
                                         Dep




                                                                                                          cte
                                                                       Energy -




                                                                                                           e
                                         ko


                                                                      Agriculture




                                                                                                             d
                                     Lac




                                                                        Nexus




                                                                                                                die
                                                                                                                   s
                                                                              ELECTRICITY and
                                                                                        Low recoveries
                   GROUNDWATER                                                           low investment in
                 Limited reach of                                       Demand side management
                                                                                           infrastructure
              GW laws and regulations
                surface irrigation/                                    Supply management through
                 Supply augmentation
                uncertain rainfall
                                                                                 rationing                 Poor quality and
                                                                                                           unreliable power
  Lucrative             through MAR
                                  Groundwater   Long hours of pumping            Energy
                                                                          Increasing efficiency of              Supply
groundwater     Demand management                                                 pumps
   markets
               Low awareness community
                                              Wastage of water and energy
                  through                                                               Highly subsidised/
                                                                           Institutional reforms
              regarding optimal                                                             free power
                         participation
                   irrigation
How are different states in India managing this
    nexus through energy side interventions?

• West Bengal – Eastern India

• Punjab – Northern India

• Karnataka – Southern India




                 Water for a food-secure world
                         www.iwmi.org
West Bengal: Alluvial aquifers, low
groundwater use and high recharge

          Water tables recover after
           monsoons and average
         depth to water table in 88%
          of villages less than 10 m.
          42% of GW resources are
         used and none of the blocks
              are over-exploited




         Water for a food-secure world
                  www.iwmi.org
Managing the nexus in West Bengal through
      Universal TOD and hi-tech metering
• Universal Time of the Day (TOD) metering of all agricultural
  tubewells in the state. Till March 2010, 90% TWs metered
• High tech metering with remotely read meters
Impacts of metering
Pump owners:
Largely winners
 Same hours of pumping
  for own use– Less
  electricity bill

 Less hour of selling water
  – Higher or same revenue

Higher bargaining power
  vis-à-vis water buyers

Win – win situation
Water buyers:
Losers




  Increase in water charges by 30-50%
  Lesser hours sold by pump owners
  Adverse terms & condition of buying water
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?
Food-irrigation-energy nexus in Punjab

Unsustainable rates of GW depletion                    Rice Wheat crop combination matches
                                                       over-exploited zones in Punjab




                                                                                     WRSu



                                                                              WR                    WMRSu
                                                                                          WR
                                                                                               WR

                                                                                                             WRM
                                                                                                     WR

                                                            WRC          WRC
                                                                                                            WR
                                                                                                    WR
                                                                                     CR




          Rice-Wheat Crop System in Punjab
          is at the heart of its agrarian prosperity   CROP COMBINATIONS

          and also contributes to its GW crisis             TWO CROP COMBINATION

                                                            THREE CROP COMBINATION

                                                            FOUR CROP COMBINATION


   Alluvial aquifers and low rainfall
Steps taken by Punjab to manage the nexus


              These measures are reasonably
             successful in improving quality of
              electricity to farmers, but severe
                rationing pushes them to use
             diesel. Fiscal discipline within the
               utilities has improved. Has not
             affected crop yields adversely yet.
Transmission and distribution losses have
         reduced marginally…
                                                        T&D losses based
                                                        on AP
                                  T&D loss level        consumption
           T&D loss level fixed   reported by the       approved by the
 Year      by the Commission      Board                 Commission
 2004-05                 23.25                 24.27                 24.59
 2005-06                     22                25.07                 25.38
 2006-07                 20.75                 23.92                 24.25
 2007-08                   19.5                22.53                 25.12
 2008-09                   19.5                19.92                 22.21
 2009-10                     22                  19.5                   22
 2010-11                     20                   18                  19.5
 2011-12                     19
 2012-13                     18


                  Water for a food-secure world
                           www.iwmi.org
But subsidy burden for agricultural
  consumption keeps rising….


       This is because the state keeps
       issuing new electricity
       connections for farmers. There
       are 1.1 million farm households
       and around 1.2 million electric
       pumps in the state!




         Water for a food-secure world
                  www.iwmi.org
Food-energy-irrigation nexus in Karnataka
                                      Area under groundwater irrigation continues to
                                      rise…




                                      As does number of electric pumpsets..
Hard rock aquifers and low rainfall
(Mis) managing Food-Energy-Irrigation Nexus in
                 Karnataka




             Water for a food-secure world
                     www.iwmi.org
Conclusions
• While the broad issues are same, different states
  have managed this nexus differently

• Ranging from very hi-tech and text-book solution
  in West Bengal, to second best solution in Punjab
  to utter anarchy in Karnataka

• Much depends on political will and overall
  governance at state level since both water and
  electricity are state subjects in India

                Water for a food-secure world
                        www.iwmi.org
Thank You

   a.mukherji@cgiar.org



Water for a food-secure world
        www.iwmi.org

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Innovations in managing the agriculture-groundwater and energy nexus

  • 1. Innovations in managing the agriculture- groundwater and energy nexus Evidence from three states in India Aditi Mukherji, IWMI Photo Davidvan Cakenberghe/IWMI Photo: :Tom van Cakenberghe/IWMI Tom Brazier/IWMI Water for a food-secure world www.iwmi.org
  • 2. The irrigation story of India…. Since 1970s, groundwater irrigated area has increased, as has number of wells and tubewells…. Water for a food-secure world www.iwmi.org
  • 3. Water for a food-secure world www.iwmi.org
  • 4. Water for a food-secure world www.iwmi.org
  • 5. Water for a food-secure world www.iwmi.org
  • 6. Water for a food-secure world www.iwmi.org
  • 7. Rising contribution of groundwater in agriculture % of Agricultural GDP 60 1970-73 40 20 BUT, depletion, scarcity and over-exploitation have 0 emerged as serious problems Percentage to Agricultural GDP 1 21 41 61 81 101 121 141 161 181 201 221 241 Districts 60 2000-03 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
  • 8. Leading to groundwater over-exploitation in many states…… Districts depicted in red and yellow are the districts with over- exploitation problems
  • 9. Growth in electricity consumption in agriculture has outpaced growth in other sectors There has been 12 fold increase in overall electricity demand in India from 1950 to 2010, but 25 fold increase in agricultural electricity demand Water for a food-secure world www.iwmi.org
  • 10. Electricity subsidy as percentage of state fiscal deficits is very high in some states Bihar West Bengal Agriculture is often blamed for U.P (Power corp) poor state of electricity utilities Maharashtra Punjab Tamil Nadu Rajasthan (Transco) Karnataka Yet farmers receive Andhra Pradesh poor quality service Gujarat Haryana Madhya Pradesh 0 20 40 60 80 100 Percentage BRISCOE, 2005, Data pertains to 2002
  • 11. And requirement for subsidy keeps rising… Net electricity subsidy in India is close to USD 9 billion and is rising year by year Source: ICRA
  • 12. Farmers get free or highly subsidized electricity in most states (though not all). 2500 2160 2000 Rs/HP/Year 1512 1500 850 1000 420 500 0 0 Punjab Haryana Gujarat Uttarakhand West Bengal States Flat rate tariff (Rs/HP/year) Even when farmers pay for electricity, they pay it on a flat tariff basis. Only exception is the state of West Bengal where agricultural tubewells are Metered and farmers pay a time of the day (TOD) tariff
  • 13. But then, there is the energy divide: Farmers in eastern India depend pre-dominantly on diesel pumps, while rest of India has electric pumps So the food- energy- irrigation nexus is also different in east vs. rest of India Water for a food-secure world www.iwmi.org
  • 14. To sum up…what is this food-irrigation and energy nexus? • India’s irrigation sector is dependent on groundwater • Much of this groundwater is pumped using electricity • Groundwater use is more than sustainable recharge in most states leading to groundwater over-exploitation • Electricity is subsidized in most (though not all) states • This creates a nexus where one sector (agriculture) is dependent on unsustainable trends groundwater and electricity sectors Water for a food-secure world www.iwmi.org
  • 15. The Food-Energy Support price policy/ Assured market AGRICULTURE Irrigation Nexus Re-aligning food procurement Choice of crops Uncertain markets for policiesdiversification crop Providing incentives to grow low Agriculture water consuming crops Better field water management techniques Ene ific er n rgy atio t Wa d Agr wa an und s ta ers ge/ cultur Gro div Mis i ng op dire Subsi leti Water- f cr Dep cte Energy - e ko Agriculture d Lac Nexus die s ELECTRICITY and Low recoveries GROUNDWATER low investment in Limited reach of Demand side management infrastructure GW laws and regulations surface irrigation/ Supply management through Supply augmentation uncertain rainfall rationing Poor quality and unreliable power Lucrative through MAR Groundwater Long hours of pumping Energy Increasing efficiency of Supply groundwater Demand management pumps markets Low awareness community Wastage of water and energy through Highly subsidised/ Institutional reforms regarding optimal free power participation irrigation
  • 16. How are different states in India managing this nexus through energy side interventions? • West Bengal – Eastern India • Punjab – Northern India • Karnataka – Southern India Water for a food-secure world www.iwmi.org
  • 17. West Bengal: Alluvial aquifers, low groundwater use and high recharge Water tables recover after monsoons and average depth to water table in 88% of villages less than 10 m. 42% of GW resources are used and none of the blocks are over-exploited Water for a food-secure world www.iwmi.org
  • 18. Managing the nexus in West Bengal through Universal TOD and hi-tech metering • Universal Time of the Day (TOD) metering of all agricultural tubewells in the state. Till March 2010, 90% TWs metered • High tech metering with remotely read meters
  • 19. Impacts of metering Pump owners: Largely winners  Same hours of pumping for own use– Less electricity bill  Less hour of selling water – Higher or same revenue Higher bargaining power vis-à-vis water buyers Win – win situation
  • 20. Water buyers: Losers  Increase in water charges by 30-50%  Lesser hours sold by pump owners  Adverse terms & condition of buying water
  • 21. 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?
  • 22. Food-irrigation-energy nexus in Punjab Unsustainable rates of GW depletion Rice Wheat crop combination matches over-exploited zones in Punjab WRSu WR WMRSu WR WR WRM WR WRC WRC WR WR CR Rice-Wheat Crop System in Punjab is at the heart of its agrarian prosperity CROP COMBINATIONS and also contributes to its GW crisis TWO CROP COMBINATION THREE CROP COMBINATION FOUR CROP COMBINATION Alluvial aquifers and low rainfall
  • 23. Steps taken by Punjab to manage the nexus These measures are reasonably successful in improving quality of electricity to farmers, but severe rationing pushes them to use diesel. Fiscal discipline within the utilities has improved. Has not affected crop yields adversely yet.
  • 24. Transmission and distribution losses have reduced marginally… T&D losses based on AP T&D loss level consumption T&D loss level fixed reported by the approved by the Year by the Commission Board Commission 2004-05 23.25 24.27 24.59 2005-06 22 25.07 25.38 2006-07 20.75 23.92 24.25 2007-08 19.5 22.53 25.12 2008-09 19.5 19.92 22.21 2009-10 22 19.5 22 2010-11 20 18 19.5 2011-12 19 2012-13 18 Water for a food-secure world www.iwmi.org
  • 25. But subsidy burden for agricultural consumption keeps rising…. This is because the state keeps issuing new electricity connections for farmers. There are 1.1 million farm households and around 1.2 million electric pumps in the state! Water for a food-secure world www.iwmi.org
  • 26. Food-energy-irrigation nexus in Karnataka Area under groundwater irrigation continues to rise… As does number of electric pumpsets.. Hard rock aquifers and low rainfall
  • 27. (Mis) managing Food-Energy-Irrigation Nexus in Karnataka Water for a food-secure world www.iwmi.org
  • 28. Conclusions • While the broad issues are same, different states have managed this nexus differently • Ranging from very hi-tech and text-book solution in West Bengal, to second best solution in Punjab to utter anarchy in Karnataka • Much depends on political will and overall governance at state level since both water and electricity are state subjects in India Water for a food-secure world www.iwmi.org
  • 29. Thank You a.mukherji@cgiar.org Water for a food-secure world www.iwmi.org