Groundwater Markets in Water Abundant Conditions: Factors Affecting Farmers’ Decision to Sell Water in Assam in North East India

Abstract

Development of groundwater-based irrigation technology resulted in the emergence of groundwater markets in many parts of India. Due to the localized nature of the markets, it deems important to capture influence of spatial variation in the functioning of the market. This study is carried out to unearth the factors influencing water selling decisions of farmers in water abundant regions of India taking the case of Assam in Eastern India. Using field-level data from two districts of the state and with the help of logit regression analysis, the study examines the determinants of water selling decision of farmers. The results have shown that excess capacity of the pump sets, availability of diesel operated pump sets and conveyance facilities, depth of the boring, caste of the farmer, etc. are some of the significant factors influencing the probability of water selling decision of a farmer. The results, on the whole, indicate that water selling decision of a farmer in water abundant regions is the result of a combined effect of a number of socio-economic, farm specific and tube well specific factors.