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Groundwater Market and Agricultural Development in West Bengal: Perspectives from a Village Study

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Groundwater Market and Agricultural Development in West Bengal: Perspectives from a Village Study 51 []pn. ]. Rural Econ. Vol. 5, pp. 51-65, 2003] Groundwater Market and Agricultural Development in West Bengal: Perspectives from a Village Study Koichi Fujita,* Ashok Kundu t and W. M. H. Jaim! Based on intensive village study this paper tries to show that the rapid agricultural growth in West Bengal since the 1980s is mainly attributable to the development of pri­ vate shallow tubewell irrigation, rather than the agrarian reforms. Large farmers mainly invested in tubewells, but it does not mean that they monopolize agricultural profit as the so-called 'waterlords'. On the contrary, water sales business became less profitable as the number of tubewells increased in the village, and the real water charge declined through the changes of contractual arrangement in the groundwater market. It also comments on the current situation of irrigation subsidy relating to state-operated DTWs and power subsidy given to electrified tubewells, as well as their effects to irrigated farming. Lastly, it points out the large difference in factor shares in rice production between West Bengal and Bangladesh, arguing that West Bengal agriculture is much more equitable in favor of landless laborers. Key words: tubewell irrigation, West Bengal', competition, factor share, subsidy, agrarian reforms. Pradesh and it was basically a 'wheat revolu­ Introduction 1. tion'. This fact was a basic reason why India The 'Green Revolution' since the mid-1960s failed to eradicate mass poverty until the end in India was characterized as both region- and of the 1970s although food self-sufficiency in commodity-specific; i.e. it concentrated in terms of no cereal import was achieved due to northern India regions such as Punjab, the success of the 'Green Revolution' strategy. Haryana, and the western part of Uttar However, since the inception of the 1980s agri­ culture in India started to record a high growth rate in almost all regions and for most * Kyoto University. commodities for more than a decade,0 which Kalyani University, India. along with the development of non­ Bangladesh Agricultural University, Bangladesh. agricultural sectors contributed to its overall The authors would like to extend sincere gratitude to Dr. Sudhin K. Mukhopadhyay, Reader in Econom­ rural development and alleviation of rural ics, Rishi Bankim Chandra Evening College and Fac­ poverty. Most noteworthy was that the poor­ ulty Associate, Institute of Study on Population, Ag­ est and the most backward regions of eastern riculture, and Rural Change (INSPARC), University India also experienced a rapid agricultural and of Kalyani, West Bengal, India, for his patient guid­ rural development since the 1980s. West Ben­ ance and suggestions during our research and also gal was not the exception to this wave of dras­ for his valuable comments on to the draft paper. Spe­ tic transformation. cial appreciation is also extended to Dr. Bhaswar Groundwater irrigation played a vital role in Moitra, Reader, Economics Department, Jadavpur leading the 'Green Revolution' in India and University, Kolkata for his kind and valuable com­ also in its eastern state of West Bengal. In spite ments on our draft paper. Last, and not least, we appreciate Mr. Toshihiko Suda, researcher of Re­ of stagnation for a long period and ]. K. search Institute of Norin Chukin Bank, Japan very Boyce's pessimistic projections (Boyce [2]), much for his full cooperation with our survey in rice production in West Bengal started to the village and useful suggestions and insights pro­ record a rapid increase from the early 1980s vided to us. (Saha and Swaminathan [15]), most probably 52 because of the rapid diffusion of private shal­ analysis of the village-level groundwater mar­ low tubewells and the related expansion of ket') In West Bengal, there is virtually no dry-season paddy (bora) areas with high-yie­ study so far that clarifies how the lding varieties and agro-chemicals, although groundwater market actually functions in a the increase of the yield of monsoon-season systematic manner, based on analysis of profit­ paddy (aman) also contributed to it The con­ ability of shallow tubewell investment and tribution of irrigated bora paddy area expan­ groundwater-irrigated (bora paddy) farming.5) sion to overall rice sector growth became more The major purpose of this paper is not to re­ and more evident and important in recent fute the general understanding that agrarian years. This rice sector growth sustained until reforms are the main cause of the agricultural today and the more recent development of growth since the 1980s in West Bengal, but in­ non-rice sectors such as oilseeds, horticulture, stead, it tries to shed light on the critical role and aquaculture brought about a drastic played by the private shallow tubewell invest­ change in rural economy and raised the living ment by large farmers in the agricultural de­ standard of its population to a substantial de­ velopment In addition, it pays full attention to gree (Gazdar and Sengupta [9]). However, de­ the neglected aspects of the evolution and the spite its importance, the contribution of tech­ structure of village-level groundwater mar­ nological change in agriculture induced by the kets, and through the analysis it tries to reveal development of groundwater irrigation has a more complete picture of the dynamics of ag­ not been properly appreciated, and academic ricultural change in West Bengal. arguments still seem to accord major credit to Due mainly to the lack of semi-macro level agrarian reforms in West Bengal, including re­ data already mentioned, this paper focuses on distribution of land, tenancy reforms (such as only a selected village in Nadia district in Operation Barga, a famous registration pro­ West Bengal, where an intensive field survey gramme of sharecroppers), and panchayat re­ was conducted in September 2000 after a pre­ forms.') liminary study in November 1999. Despite ap­ An important factor that impedes objective parent limitations due to this methodology assessment of the contribution of groundwater adopted, this study tries to cover several criti­ irrigation to agricultural growth in West Ben­ cal and wider issues and points. gal is the scarcity of statistical data on private First, it tries to delineate, as much as possi­ tubewells. In particular, data are lacking on ble, the historical process of irrigation develop­ the regional distribution of private tubewells ment and agricultural change in the study vil­ and its changes over time. This is a major con­ lage from the mid-1960s until today. Besides straint hindering any rigorous economic showing that the agricultural development in analysis of the rapid agricultural growth in the the village is mainly attributable to the private state since the 1980s.') shallow tubewell investment by large farmers, Micro-level intensive studies on ground­ it attempts to show how the state-level policy water irrigation are also far from abundant, changes affected the development of irrigated and unfortunately the very few studies that farming on the one hand, and how the ground­ are available are weak in both data set ob­ water market experienced a structural change tained and analytical depth. For example, over time on the other hand. Second, through based on his study in a village in Bardhaman rigorous economic analysis it tries to question district in 1991, Webster correctly pointed out the existence of 'waterlords' who secure high that "it is the dry season bora paddy cultiva­ returns from bora paddy cultivation. It shows tion enabled by shallow tubewells which has how groundwater markets became more and been the real base for the rapid growth in more competitive due to the increase of shal­ foodgrain production in the district in the low tubewells in confined areas, which caused 1980s and early 1990s" (Webster [19], p. 336) a declining rate of return to such investment but found a skewed distribution of private In addition, while it shows how groundwater shallow tubewells in favor of large farmers, markets function relatively well at the village and rushed to conclude that the high returns level, at the same time it points out when and to bora paddy cultivation are secured by the how such markets fail and why. Third, as a by­ tubewell owners, without sufficient economic product of analysis, the large difference in Groundwater Market and Agricultural Development in West Bengal: Perspectives from a Village Study 53 factor shares (especially land and labor) in (North) and 24-Parganas (South) are the rice production between West Bengal and major groundwater irrigation development Bangladesh will be pointed out and discussed. belt and Nadia district is the nuclear area The comparison between the two regions with among others. The average annual rainfall in similar agro-ecological conditions and histori­ Nadia district reaches to 1,474 mm and 88% of cal background is meaningful and can provide it is concentrated in the monsoon season from important implications. Fourth, in the minor May to October. Aman (monsoon-season irrigation sector in West Bengal, the more than paddy) can be grown basically in the rain fed 30-year-old system of state-operated deep condition but boro (dry-season paddy) cultiva­ tubewells is still working and this study tion is not possible without irrigation. Another presents a preliminary discussion on its cur­ notable feature of Nadia district is that it is rent status and future prospects. Fifth, it tries one of the most backward areas in terms of to evaluate the effects of power subsidy on the land reform policy implementation; i.e. redis­ minor irrigation sector, and examines the tributed land in the district at the end of Sep­ question of who the beneficiaries of the sub­ tember 1999 (accumulated) is only 7,800 hec­ sidy are. Lastly, the paper shows how farmers tares (0.03% of farm land) while the same fig­ have been so far coping with the problem of ure for the whole West Bengal is 426 thousand declining groundwater level and discusses its hectares (7.5%).1t should also be noted that in implications for both sustainability and effi­ the study village almost no land reform meas­ ciency of groundwater markets.
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