Report by Moderator (1)Ramesh ChandRamesh ChandIncentives for Sustainable & EfficientWater Allocation and Management1
CONTEXT• Rising stress on water resources – pain is felt more bypeople than its realisation by policy makers• Water is a g...
…cont• Dichotomy– Irrigated – Profligacy, wastage– Dryland: Scarcity and stress• Despite rising scarcity, little is done t...
Policy Questions and Issues• What are the obstacles to having more effectivepolicies in action?• How policies can improve ...
What Constrains Policy Support to DARamesh Chand• Incentives for irrigated agriculture are simpleand straight based on ext...
Lessons• Need for a paradigm shift in policies based onspecificities of agri in water stressed region• Farm level incentiv...
…….. Lessons• Promote crop pattern based on comparativeadvantage in terms of natural resourcesendowments rather than disto...
Key Messages1. Food security cannot be sustained without water security2. Need to raise investment in water-saving technol...
Recommendations1. Equip small-scale farmers with information, knowledge andfinance to invest in water saving technologies2...
Recommendations1. Equip small-scale farmers with information, knowledge andfinance to invest in water saving technologies2...
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Summary of Theme 1 Outcomes

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Dr. R. Chand, National Centre for Agricultural Economics and Policy Research, India

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Summary of Theme 1 Outcomes

  1. 1. Report by Moderator (1)Ramesh ChandRamesh ChandIncentives for Sustainable & EfficientWater Allocation and Management1
  2. 2. CONTEXT• Rising stress on water resources – pain is felt more bypeople than its realisation by policy makers• Water is a great source of inequality in itself and itcreates layers of inequalities• Most of the incentives follow, or, are based on use ofwater in agriculture– Energy subsidy, irrigation subsidy, fertiliser– Output support highly skewed towards irri areas and crops• Policies often take myopic view – sacrifice long run tomeet short term goals.• The gap between what ought to be done and what isbeing done: this is appalling in water policies• Consequence: rising stress and degradation of waterservices. Robbing future generations of livelihoodRamesh Chand2
  3. 3. …cont• Dichotomy– Irrigated – Profligacy, wastage– Dryland: Scarcity and stress• Despite rising scarcity, little is done to conserve,harvest, manage or improve efficiency of water• Market forces add up to tragedy of dryland –waterintensive crops soon replace water efficient cropsand practices once water supply improves, leavingDA to same fate.• Incentives are also relative: strong externality leadingto uneven playing field for dryland agriculture• Regressive. Can we make them progressive from DApoint of view? 3
  4. 4. Policy Questions and Issues• What are the obstacles to having more effectivepolicies in action?• How policies can improve efficiency in waterallocation?• How to reduce financial and environmental costs ofwater delivery and use?• What incentives or new approaches are needed forcreating efficient use of water?• What are the cost-rationalization policies and theirimpacts on productivity, efficiency, food security,rural employment, farm income, livelihoods andsustainable growth?Ramesh Chand4
  5. 5. What Constrains Policy Support to DARamesh Chand• Incentives for irrigated agriculture are simpleand straight based on external (market) input• Complex in DA: built around natural resources,farming system. Often involves group, area• Not much clarity on design and structure ofincentives for DA.• Bypassing process. Discussing implementationwithout proposing what are app incentives• Lot of effort needed on designing incentives5
  6. 6. Lessons• Need for a paradigm shift in policies based onspecificities of agri in water stressed region• Farm level incentives– Shift basis of subsidies from “input centric” to“technology and farm practices centric”– Require designing of special incentive instrumentsfor supporting water use and agri in dryland farming– Social scientists to design innovative incentives• Infrastructure v/s incentives• Dovetailing rural development policies (safetynets) for creation of assets (NREGA-India)Ramesh Chand6
  7. 7. …….. Lessons• Promote crop pattern based on comparativeadvantage in terms of natural resourcesendowments rather than distorted marketsignals• Public investments:– Need to assess from service delivery point of viewrather than from level of capital creation– Public investments in water andpublic investment for waterRamesh Chand7
  8. 8. Key Messages1. Food security cannot be sustained without water security2. Need to raise investment in water-saving technologies3. Investment alone is not sufficient: policies, institutions andincentives at different levels (household, national and global)4. Incentives and investments should go together5. Action and research for improving food and water securityrequires data and tools (accountability system). The gap inaccountability system among the different stakeholdersneeds to be addressed.6. Need to create and promote inclusive and stable land tenure(land consolidation)7. Removal of distortions in the existing incentive frameworkthat encourage less sustainable land and water managementpractices, is essential.Ramesh Chand8
  9. 9. Recommendations1. Equip small-scale farmers with information, knowledge andfinance to invest in water saving technologies2. Step up national and international efforts to mobilize publicand private funds for investment in water infrastructureincluding water harvesting, conservation and greening.3. Establish tariffs for cost recovery in transparent andparticipatory mode.4. Use water pricing policy to promote equity and efficiency5. Adopt an integrated systems approach towards diversificationand risk management.6. Design appropriate incentive structure that can be based ontechnology and practices.7. Countries should enhance cultural and ethical values towardswater and its managementRamesh Chand9
  10. 10. Recommendations1. Equip small-scale farmers with information, knowledge andfinance to invest in water saving technologies2. Step up national and international efforts to mobilize publicand private funds for investment in water infrastructureincluding water harvesting, conservation and greening.3. Establish tariffs for cost recovery in transparent andparticipatory mode.4. Use water pricing policy to promote equity and efficiency5. Adopt an integrated systems approach towards diversificationand risk management.6. Design appropriate incentive structure that can be based ontechnology and practices.7. Countries should enhance cultural and ethical values towardswater and its managementRamesh Chand9
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