Groundwater market in water-abundant regions: determinants of farmers’ decision to buy irrigation water in Assam in North-East India

Abstract

Abstract In response to the development of groundwater-based irrigation technology, institutions such as groundwater markets have emerged in many parts of India. While the farmers’ decision to buy water is shaped by issues such as capital scarcity, size of operational holdings, number of fragmented plots, farmers’ access to institutional credit, etc., there are spatial variations of factors affecting farmers’ participation in the market due to its localised nature. In view of the fact that the number of studies on water markets from water-abundant regions of India is very limited, the present study was carried out to unearth the factors influencing the water-buying decisions of farmers in the groundwater market in Assam in the eastern part of India. Using field data from two districts of the state, viz. Nagaon and Morigaon and with the help of logit regression, this study examines the determinants of water-buying decisions of farmers in Assam. The results of the logit analysis show that own farm size, farmer's access to institutional credit, age, education, and better contact with extension agencies reduce the probability of water-buying decision for a buyer. For a tenant farmer, the probability of buying water is found to be higher.