Econometric analysis of optimization of water among different sectors

Abstract

Water being a limited resource, its efficient use is very vital and basic to the very survival of the ever-increasing population. Every effort must be made for the best use of available water so as to make possible a high level of continuous production per unit volume of water per unit area of cropped land and per unit time. Water is a precious commodity that will become even more valuable as time goes by. Hence great emphasis is to be given for efficient use of this scarce resource but valuable resource especially in the command areas of the irrigation projects in order to reap the benefits offered by the technological innovations in farming. The increase in demand will be higher for urban and industrial uses than for agriculture. The total demand for water in India is projected to be 886 billion cubic metre in 2030. However supply expansion will not be sufficient to meet increasing demands. Comprehensive reforms are required to improve the incentives at each level of the water allocation process in order to improve the efficiency of agricultural water use and sustain crop yields and output growth to meet the rising food demand while allowing transfers of water out of agriculture. The proposed study was taken up in Bhavani basin where water transfer has been an increasing phenomenon over years. The study examined optimum water allocation among different sectors and ensuring equity in distribution of water to all the beneficiaries of the ayacut.