Pricing of Groundwater and Constraints of Farmers in Groundwater Marketing in North Eastern Karnataka

The present study was conducted in North Eastern dry Zone of Karnataka which falls under semi arid tropic region. The study is based on primary data obtained from 45 water sellers and 45 water buyer farmers through snow ball sampling techniques. The data collected were analysed by using descriptive statistics and Garret ranking method. The cost of irrigation was calculated by employing amortization technique. The findings revealed that there were mainly two methods of transactions that could be seen in the groundwater markets in the study area viz., cash payment and crop share/ kind method. It is also found that relationship between water sellers and water buyers among the sample farmers in the study area. The percentage of neighbourers in the total transaction of groundwater marketing was 55.23 and relatives constituted 26.66 per cent, and the percentage of friends was 21.11. The water price or rents varied with type crops grown by water buyers (₹7848.06, ₹2240, ₹1950 and ₹2350 for paddy, groundnut, pigeon pea and cotton, respectively.) per acre in the study area. High water charges, lack of money to pay for water rent, unable to get water timely, etc were the major constraints of water buyer farmers and difficulty in fixing the price or rent for groundwater, delaying in payment of groundwater by water buyers, irregular power supply in rural area were the major constraints faced by water seller farmers in the study area. Therefore, Government and Agricultural extension institutions should educate the farmers about the pros and cons of over exploitation of groundwater not only for present generation and but also on future generation.