Abstract
Crop production and human survival primarily depends on available freshwater resources, where upto 70% of the resource is used for irrigation purpose either as surface water or groundwater. Lack of surface water resources increases the dependence on groundwater. Ground water is the backbone of available fresh water resources. Country’s economic growth is always dependant on high market opportunity and in-order to boom agricultural economy of our country, groundwater market plays a vital role. This is a highly sensitive market as it has multiple dependant factors like growing population, effective water usage, availability, water restoration which changes demand and decides the role of water market. Although water market is an informal structure, the demand and availability leads the exchange of water for monetary value charged on the basis of area, volume and time. Due to increase in demand and decrease in availability which is caused by various environmental factors, water market plays a vital role in overall contribution towards agrarian economy. This study tries to compare the cost and water use efficiency between water participating and non-participating farms in cuddalore district of Tamil Nadu.
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