1651985 2015 Research ReportsThe publications in this series cover a wide range of subjects-from computer modeling to experience with water user associations-and vary in content from directly applicable research to more basic studies, on which applied work ultimately depends. Some research reports are narrowly focused, analytical and detailed empirical studies; others are wide-ranging and synthetic overviews of generic problems.Although most of the reports are published by IWMI staff and their collaborators, we welcome contributions from others. Each report is reviewed internally by IWMI staff, and by external reviewers. The reports are published and distributed both in hard copy and electronically (www.iwmi.org) and where possible all data and analyses will be available as separate downloadable files. Reports may be copied freely and cited with due acknowledgment. About IWMIIWMI's mission is to provide evidence-based solutions to sustainably manage water and land resources for food security, people's livelihoods and the environment. IWMI works in partnership with governments, civil society and the private sector to develop scalable agricultural water management solutions that have a tangible impact on poverty reduction, food security and ecosystem health.

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Improvements in water productivity (WP) are often suggested as one of the alternative strategies for overcoming growing water scarcity in India. This paper explores the potential improvements in WP of food grains at district level, which currently varies between 0.11 and 1.01 kilogram per cubic metre (kg/m3), in the 403 districts that account for 98% of the total production of food grains. The paper first finds the maximum yield function conditional on consumptive water use (CWU) and then explores the potential improvements in WP by: (a) bridging the gap between actual and maximum yield while keeping CWU constant; and (b) changing the maximum yield by adjusting the CWU using supplementary or deficit irrigation. Deficit irrigation in some areas may decrease yield but can increase production if land availability is not a constraint. A large potential exists for bridging the yield gap in irrigated areas with CWU between 300 and 475 mm. Of the 222 districts that fall under this category, a 50% reduction in yield gap alone could increase production by 100 million tonnes (Mt) without increasing CWU. Supplementary irrigation can increase yield and WP in rain‐fed and irrigated areas of 266 and 16 districts with CWU is below 300 mm. Deficit irrigation in irrigated areas of 185 districts with CWU above 475 mm could increase yield, WP and production. Decreasing CWU in irrigated areas with CWU between 425 and 475 mm reduces yield slightly, but if availability of land is not a constraint then the benefits due to water saving and production increases could exceed the cost.

The state of Tamil Nadu, India, is in the grips of a water crisis, with demand far outstripping supply. As the economy of the state grows, this crisis is going to become ever more serious. To date the focus of state water policy has been on trying to augment supplies, from within the state (even from desalinization) and from neighboring states. In addition, the water use is regulated in a way that does not encourage the highest value uses. International experience shows that supply-side measures must be complemented by demand-side measures and that practice must move away from fixed, command-and-control allocation policies towards flexible allocation mechanisms, which facilitate the voluntary movement of water from low to high-value uses. This study addresses the question of whether such a change in allocation policies is worth doing. It addresses this question by developing optimization models for each of the 17 river basins in Tamil Nadu (including an assessment of the economic value of water in different end-uses – agriculture, domestic and industry), then using an input–output model embedded in a social accounting matrix (SAM), to assess the impact of these changes on the state economy and on different rural and urban employment groups. The results suggest that a shift to a flexible water allocation system would bring major environmental, economic and social benefits to the state. Compared with the current “fixed sectoral allocation” policy, a flexible allocation policy would, in 2020, result in 15% less overall water used; 24% less water pumped from aquifers; 20% higher state income; with all strata, rich and poor, benefiting similarly, with one important exception, that of agricultural laborers.

This paper presents results of a study on the direct and indirect economic impacts of the Bhakra multipurpose dam system in the northern part of India that has provided direct benefits in terms of hydropower, irrigated agriculture, water supply, flood control and drought prevention. These direct outputs from the Bhakra dam system have, in turn, generated (i) inter-industry linkage impacts, both backward and forward linkages, resulting in increase in the demand for outputs of other sectors, and (ii) consumption-induced impacts arising out of increases in income and wages generated by the direct outputs of the dam. Such indirect economic impacts, quantified by using a fixed-price multiplier model based on a social accounting matrix (SAM) for Punjab, give a multiplier value of 1.90, indicating that for every rupee (Rs ¼ 100 paise) 1 of additional value added directly by the project in the agricultural and electricity sectors, another Rs 0.90 (90 paise

The overall measure of farm‐level technical efficiency is generally used to derive recommendations for the use of individual inputs. In this paper, joint estimation is made of technical and individual input‐use (e.g. irrigation water productivity) efficiencies. This indicates that overall technical efficiency is not an indication of the efficiency level of all the individual inputs used. This is because the efficiency of individual inputs may vary and suggests that greater effort should be made to improve such efficiencies in comparison with overall technical efficiency. The model is applied to rice production in four tank‐irrigated districts in Tamil Nadu, India, which is one of the most important tank‐irrigated areas in India. The average technical efficiency is 62.8%, which indicates that in order to achieve the present level of production, 62.8% of the current level of input resources is sufficient. Average irrigation water productivity is estimated at ~34%, indicating that current output levels could be achieved with 66% less irrigation water. These findings also suggest the need for improvements in crop and water productivity. Thus, the paper makes a contribution in the form of a methodology development for possible adoption in future irrigation water productivity studies. Copyright © 2017 John Wiley & Sons, Ltd.