Uniting agriculture and nature for poverty reduction

From land reform to pump energisation: A shift in agricultural drivers in West Bengal

Archisman Mitra, Marie-Charlotte Buisson

Stockholm World Water WeekWorkshop - Water, Energy, Food and Ecosystem Security2 September 2014

Uniting agriculture and nature for poverty reduction

West Bengal - Indian state in the Eastern Gangetic plain

Abundant monsoon rainfallAman (monsoon rice) and

Boro (summer rice) are most important crops

3 stages in agricultural history : Pre 1980 stagnation 1980s to 1990s – high

growth Since 2000s - slowdown

Background

Fig 4 – Incidence of rural poverty in India

25

Source : IWMI

West Bengal

Research objectives

Literature has started recognizing the importance of the energy-irrigation nexus in eastern India

Historically its direct quantitative impact measurement is still missing

Attempt to understand the quantitative impacts of pump electrification in the previous 2 decades using district level-data

Analysis of post land-reform phase of West Bengal

“Operation Barga” launched in West Bengal in 1978

Researchers identify different reasons why “Operation Barga” ushered in Green revolution of 1980s –

Reducing eviction threat of tenants Increase bargaining power of tenants Better access to institutional loans

Banerjee, Gertler and Ghatak (2002) “Operation Barga” increased average rice yields

by 20%, 1979-1993

Land reform as driver of growth

Operation Barga directly affected a very small proportion of the cultivated land

8.2% of net cropped area by 1998

The 1980s simultaneously saw the Green revolution spreading across West Bengal

Diffusion and adoption of HYV seeds, fertilizers Higher irrigation expenditures by Panchayats (local govt.) Better road connectivity

Bardhan and Mukherjee (2012) show that quantitative impact of land reform is much smaller, when controlled for other policies especially irrigation.

Relativizing the impact of land reform

Irrigation situation

Fig 2 - Number of pumps for surface and groundwater irrigation in West Bengal (Source: Minor irrigation census, CGWB, GoI)

Area irrigated by tube well is approximately 43.8% of total area irrigated in 2000, while it was only 13.6% in 1975.

Diesel vs Electric pumps

1987-88 10.6

1994-95 16.82000-01 15.42006-07 20.2

Tab 1 - Percentage of electrified pumps

Electric pumps essential for boro cultivation Rising diesel prices, by almost 450% from 1994 to 2006 High and flat tariff rate for electric pumps (before 2007) Incentive for electric Pump owners to sell water – Mukherjee

(2007) estimates that electric pumps irrigated almost thrice the area irrigated by boro

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

0.05.0

10.015.020.025.030.035.040.0

0.05.010.015.020.025.030.035.0

Price of diesel at current prices (Rs/litre)Price of diesel at constant 2004-05 prices (Rs/litre)

Rs/li

tre

Rs/li

tre

Fig 3 - Diesel prices in West Bengal, 1973-2009Source : IWMISource : Minor irrigation census & WBSEDCL

Data Source

BAES, Government of West Bengal

Panel data created from different sources : Statistical Handbook , West Bengal (different years) Economic Review, West Bengal (different years) Annual report of WBSEDCL Online resources: ICRISAT VDSA database, Indiastat

website

Panel consists of :13 Districts (Excluding Puruliya and Darjeeling)13 years (1994 -2006)

Methodology

Cumulative number of electrified pumps (in district d for year t, in log)

Cumulative number of sharecroppers registered under Operation Barga(in district d for year t-1, in log)

Other time-varying variables:Fertilizer useRainfallCanal accessRoad-accessPrices of rice Diesel price

Boro Area Boro Yield Rice Yield

𝑙𝑛𝑌 𝑑𝑡=𝛼𝑑+𝜑𝑡+𝛽1 . 𝑙𝑛𝐸𝑃𝑑𝑡+𝛽2 . 𝑙𝑛𝑏𝑎𝑟𝑔𝑎𝑑𝑡 −1+𝛽3 .𝑋𝑑𝑡+𝜀𝑑𝑡

Estimation with a panel regression method We consider cluster – robust standard errors to ensure that we do not get

false positives due to multi-collinearity

Result

log (boro area)

log (boro area)

log (boro yield)

log (boro yield)

log (rice yield)

log (rice yield)

log(Share cropper registration (lagged))

1.286(0.179)

0.723(0.403)

0.589(0.268)

0.647(0.236)

-0.0244(0.96)

-0.00279(0.996)

log(Cumulative no. of electrified pumps)

1.615***(0.000)

1.656***(0.000)

-0.0435(0.672)

-0.00821(0.964)

0.146**(0.007)

0.222*(0.015)

Controls No Yes No Yes No Yes

Sample size 169 157 169 157 169 141

Significant and positive effect of pump electrification on area of boro cultivated and yield of rice.

Tab 2 - Effect of Pump Electrification on Agricultural variables in West Bengal, 1994-2006

Impact on yield of boro is not significant however.No significant impact of Barga registration rate on agricultural

outcomes

ExplanationsPump electrification brought more area under boro

cultivation previously which remained fallowPositive and significant effect on area under boro

While boro yield remained same or slightly worsened

Our estimates show pump electrification (increasing by 18.5% during 1994-2006) caused boro area to rise by 30.6%.

No effect of land reform, district dummy captures it all

Pump electrification by providing better access to irrigation, protects from rainfall fluctuation and ensures better yield

Uniting agriculture and nature for poverty reduction

40.1% stage of groundwater development in 2009, 50.9% in 2000, 86% of blocks are safe

Preliminary regression result indicate number of electrified pumps had no significant effect on post monsoon water level – more work needed

Groundwater situation

Fig 4 – Classification of groundwater development, 2009

125

Source : IWMI-Tata Water Policy Research Highlight, 36.

ConclusionAccess to groundwater irrigation via electric pump has

become the major driver of agricultural growth in West Bengal, taking over the role that land reform had in the 1980s.

Recent policy changes in Electrification policy Connections doubled in just 5 years. Ongoing research points to still existing limitations in

implementation

Need to be careful about its impact on groundwater tables, more research required on the sustainability issue

Uniting agriculture and nature for poverty reduction

Thank You

Contact : Archisman Mitra, International Water Management Institute

A.Mitra@cgiar.org