This paper investigates the factors influencing the decline in collective management of local commons and the impact of this decline on agricultural production and household consumption. The analysis is based on a village and household data set collected in 1999 in Tamil Nadu, India, where tank irrigation systems are managed collectively for rice cultivation by informal water users' organizations. Our statistical analyses find that one major reason for the decline in collective tank irrigation management is the dissemination of private well irrigation systems. Once the decline has occurred, our analyses predict that the gap in rice yields between farmers who have access to private wells and those who must rely solely on tanks will widen, with only the latter group suffering lower yields. Our analyses also find that the same pattern holds for levels of income and consumption because the affected farmers cannot sufficiently compensate for the loss of their rice income by diversifying their income sources to agricultural labor or nonagricultural work. In this way, the decline in collective management results in greater inequality and poverty. Copyright 2007 International Association of Agricultural Economists.

Abstract:The economic value of tank irrigation water was determined through Contingency Valuation Method by analyzing farmers' willingness to pay for irrigation water under improved water supply conditions during wet and dry seasons of paddy cultivation. Quadratic production function was also used to determine the value of irrigation water. The comparison of the economic value of water estimated using different methods strongly suggests that the present water use pattern will not lead to sustainable use of the resource in the tank command areas. Policy options for sustainable use of irrigation water and management of tanks in India were suggested.

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Purpose Changing climate has increasingly become a challenge for smallholder farmers. Identification of technical, institutional and policy interventions as coping and adaptation strategies and exploring risks of their adoption for smallholder farms are the important areas to consider. The aim of the present study was to carry out an in-depth analysis of adaptation strategies followed and the associated risk premium in technology adoption. Design/methodology/approach The study was carried out in the dryland systems of three Indian states – Andhra Pradesh, Karnataka and Rajasthan – and was based on a survey of 1,019 households in 2013. The flexible moment-based approach was used for estimating the stochastic production function, which allowed estimation of the relative risk premium that farmers are willing to pay while adopting the technologies to avoid crop production risks. Findings In all the three states, the risk premium (INR ha−1) was higher for farm mechanization compared to supplemental irrigation, except in the case of Andhra Pradesh. The higher the level of technology adoption, the higher the risk premium that households have to pay. This can be estimated by the higher investment needed to build infrastructure for farm mechanization and supplemental irrigation in the regions. The key determinants of technology adoption in the context of smallholder farmers were climatic shocks, investment in farm infrastructure, location of the farm, farm size, household health status, level of education, married years, expected profit and livestock ownership. Originality/value Quantification of the risk premium in technology adoption and conducting associated awareness programs for farmers and decision-makers are important to strengthen evidence-based adoption decisions in the dryland systems of India.

Groundwater depletion is experienced in several districts of Tamil Nadu state and Coimbatore district is heading in that direction. The average well failure rate is 47% for open wells and 9% for bore wells. The total cost of depletion for new wells varies from Rs 1,999 per ha to Rs 90,975 per ha. The electricity subsidy to the farmers has varied from Rs 22,621 per ha for coconut growers to Rs 25,498 per ha for banana growers as on 2004. The cost of irrigation per cubic metre (m 3 ) is less on large farms. The average net return with free electricity varies from Rs 0.14 per m 3 to Rs 1.38 per m 3 and is drastically reduced when electricity is priced at an economic cost, i.e. Rs 21.15 to Rs 20.14 per m 3 . The shift in cropping pattern towards high value crops helped the farmers to some extent to bear the cost of externalities arising out of depletion. The social cost caused by groundwater overdraft is about Rs 554.3 million, which may increase when the well density increases further. Suggested policy options are to change the cropping pattern to less water-consuming crops, to invest in watershed development activities, to change inefficient pumpsets and to adopt well spacing norms.