Phase I

RESEARCH CONDUCTED IN EASTERN DRY AGROCLIMATIC ZONE

TITLE OF THE STUDY: Estimation of Externalities due to Sand Mining in Water Streams in affected Riparian Areas of Karnataka.

POST GRADUATE STUDENT INVOLVED:
Smt. Hemalatha A.C.
email: achema@rediffmail.com

Preamble

Riverbeds are source of sand, which is basic raw material in construction activity. The layer of sand forms the spongy surface, which enhances groundwater recharge. In recent years due to rapid urbanization sand has been exploited in unsustainable manner, which has adverse impacts on riparian areas. In Karnataka Department of Mines and Geology permitted mining of sand along the riverbed of Uttara Pinakini. But the department could not strictly monitor the mining of sand as a result sand has been mined more than permitted level, which has adverse impact on riparian area. Sand mining is done to a depth of 20 to 30 feet, so the study is undertaken along Uttara Pinakini to estimate the impact of sand mining. This study estimates the externalities due to mining on groundwater depletion, which effects the irrigation along the river stream.

The major source of irrigation is groundwater in the hard rock areas of Gowribidanur as river flow is seasonal and farmers depend on borewells, open wells and filter point wells for irrigation. Sand mining has resulted in groundwater depletion, which increased the well failure in sand mining area.

Objectives of the study

Estimation of externalities due to sand mining in streams on crop pattern, groundwater resources and farm economy

Estimation of the demand function for sand for civil works.

Documentation of the travails of farmers and stakeholders from sand mining

Major Findings of the study

Groundwater depletion is the main impact occurred due to sand mining. The proportion of non-functional bore wells (12 percent), filter point wells (23 percent) and open wells (56 percent) were lower in non-sand mining areas compared with non-functional bore wells (21 percent), filter point wells (68 percent) and open wells (100 percent) in sand mining area.

The effect on agricultural income is reflected on net returns per acre in sand mining and non-sand mining areas. The net return per acre is Rs. 3880 and Rs. 12,316 respectively for rainfed and irrigated in non-sand mining areas. The net return per acre in sand mining area is Rs. 2380 and Rs 9992 respectively for rainfed and irrigated areas.

The net return per acre under open wells is Rs 10605 and Rs 0 in non-sand mining and sand mining areas respectively. The net returns per acre under filter point wells are Rs. 6635 and Rs.14147 in sand mining and non-sand mining areas respectively. The net return per acre under bore well irrigation is Rs. 9992 and Rs 12170 respectively in sand mining and non-sand mining area.

In water and labour intensive crops, the net return per acre is high in non-sand mining area compared to sand mining area. In crops like paddy, sugarcane, banana the net returns per acre is Rs. 5513, Rs, 22811 and Rs. 23850 respectively in non-sand mining areas as against Rs. 2572, Rs. 15500 and Rs. 15468 respectively in sand mining areas. The net return per acre from all crops is 18 percent high in non-sand mining areas compared to sand mining area.

The net returns per acre was 53 percent and seven percent lower among filter point wells and bore wells respectively in sand mining area compared to non-sand mining area. After considering proportion of well failure the net returns per acre was lower by 79 percent and 11 percent respectively among filter point wells and bore wells respectively in sand mining area compared to non-sand mining area. Further when net returns per acre discounted considering the average age, the net returns per acre was lower by 89 percent and 19 percent respectively among filter point wells and bore wells respectively in sand mining area compared to non-sand mining area.

Agriculture is the main source of income (60 per cent) followed by sericulture (21 per cent) in non-sand mining areas whereas in sand mining areas sand mining activity is the main source of income (59 per cent) followed by agriculture (31 per cent).

Based on activities followed farmers were characterized into different categories. About 42 per cent farmers belong to agriculture + labour + mining category and earn net income per acre Rs 57823 followed by agriculture + labour +sericulture category and earn net income of Rs.52288 in sand mining areas.

In non sand mining area about 46 percent of farmers depend on agriculture + livestock category and their net income per acre is Rs 13441, where as 37 per cent farmers belong to agriculture +labour + sericulture and earn net income per acre is Rs. 31295 followed by 17 per cent of farmers agriculture + labour + other activities category and they earn net income per acre Rs.20491.

The proportion of filter point well failure is 152 per cent more in sand mining area compared to non-sand mining area. Irrigation cost per acre-inch of groundwater used from filter point wells is Rs. 312 and Rs 146 respectively in sand mining and non-sand mining areas respectively.

Among bore wells the proportion of failure is 36 per cent more in sand mining area as compared to non-sand mining areas. Irrigation cost per acre-inch of groundwater used is Rs.307 and Rs 109 respectively in sand mining and non-sand mining areas. Net returns per rupee of irrigation cost are Rs.5.0 and Rs.10.3 respectively in sand mining and non-sand mining areas.

The proportion of well failure of open wells is 100 percent and 52 percent respectively in sand mining and non-sand mining areas.

Irrespective of wells, the proportion of well failure is 53 per cent high in sand mining compared to non-sand mining areas. The irrigation cost per acre-inch of groundwater used is Rs. 309.5 and Rs 133 respectively in sand mining and non-sand mining areas. The net return per rupee of irrigation cost is Rs. 4.32 and Rs.11.88 respectively in sand mining and non-sand mining area.

Economics of irrigation and distance from streams in sand mining and non-sand mining areas. In sand mining areas the proportion of well failure (0.68 to 0.19) declines as they move away from stream whereas in non-sand mining areas there is no variation in proportion of well failure (0.33 to 0.23).

Irrigation cost per acre of GIA decreases from Rs. 861 to Rs 332 in sand mining areas as against Rs. 173 to Rs. 127 in non-sand mining areas as the distance of wells increases from river streams. Negative externality incurred due to investment on additional wells reduces from Rs. 7080 to Rs. 1585 whereas in non-sand mining areas it increases from Rs. 1394 to Rs. 1462.

When we consider before and after situation in sand mining areas, the water yield has declined by 36 percent among filter point wells and 35 percent among bore wells. The number of filter point wells and bore wells reduced by 65 percent and 21 percent respectively in sand mining area.

Around 20 per cent of farmers in sand mining areas provide road linkage for transporting sand. The net return per acre from providing road linkage is Rs.2581 after amortizing for three years at the rate of two percent.

When externality is considered, the net return in sand mining area was minus Rs.771 per acre, whereas without considering externalities the net returns accounts to Rs.6250. This apparently indicates that farmers are enjoying pseudo illusionary return of Rs.6250 per acre, while they are in fact losing Rs.711 per acre due to sand mining externality.

The estimated demand function for sand in Bangalore city indicates that demand of sand is price inelastic. For every 1 per cent increase in price the quantity demanded decreases by 0.87 per cent.

On average sand transporters will supply 25 loads per month realizing a gross return of Rs.4200 per load and net return of Rs.835 per load.

Implications

Groundwater is crucial source for the farmers in Gowribidanur taluk to eak out the living since there is no any perennial source of irrigation. Currently the irrigation wells in the riparian areas of Uttara Pinakini are seriously threatened due to excessive sand extraction, which in turn affects the groundwater recharge. This had led to increase in proportion of well failure.

Net returns per well in sand mining is 41 percent lower compared to non-sand mining area. The net return per rupee of amortized cost of irrigation is 63 percent lower in sand mining compared to non-sand mining area.

This study has amply demonstrated that distance from river stream plays a crucial role in degree of functioning wells. The proportion of well failure (0.52) within 120 feet in sand mining is 36 percent higher compared to non-sand mining area. Therefore it is imperative that sand mining is seriously (negative externality) affecting the interests of the economy of riparian farmers along the Uttara pinakini basin. This calls for a serious, effective and efficient implementation of regulation of sand mining for the benefit of both agriculture and civil works.

Currently the sand extraction is permitted up to three feet by paying a royalty of Rs.45 per truckload of sand to the Department of Mines and Geology, however, sand miners are excavating even up to 40 feet in Uttara pinakini stream. Thus department of mines and geology has to seriously monitor the sand mining activity for the overall benefit of society.

The estimated negative externality per irrigation well in the Gowribidanur sand mining area was Rs. 4186 per year. There are about 8000 irrigation wells located in the riparian areas of the Gowribidanur river stream, where sand mining is actively being undertaken. Thus, the total estimated negative externality was Rs.3,34,88,000. The total estimated sand accumulated in uttara pinakini river stream is 1,74,00,000 cubic meter in fifteen years, of which 61 percent was extracted, constituting 1,06,14,000 cubic meter or 37,14,90,000 cft in fifteen years. Therefore annual sand extracted is 2,47,66,000 cft imposing externality of Rs 1.35 per cft or Rs .540 per load. In order to conserve the sand resources along the riparian areas, the environmental cost Rs 540 per load should be imposed to internalise the pressure on this natural resource in the market price of sand.

This research is published in International Journal of Ecology & Development (IJED)

Click here to Download this paper, M.G. Chandrakanth, A.C. Hemalatha & N. Nagaraj, (2004) , Estimation of Externalities Due to Sand Mining in Water Streams in Affected Riparian Areas of Karnataka, International Journal of Ecology & Development (IJED), Vol.2, pp. 27-42.

RESEARCH CONDUCTED IN SOUTHERN DRY ZONE

TITLE OF THE STUDY: Estimation of externalities due to use of polluted groundwater for irrigation in Kabini command, Karnataka

POST GRADUATE STUDENT INVOLVED:
Smt. Varuni C.N.
email: varuni_cn@rediffmail.com

Preamble

During the grant period covered in this report, study on the effect of groundwater pollution in irrigated agriculture is. In this study externalities due to use of polluted groundwater for irrigation are estimated by covering the population of all the 35 farmers who had irrigation wells which are affected by distillery effluent pollution in the distillery effluent polluted villages (DEPA), comprising Geekalli, Golur in Nanjangud taluk. For contrast, a sample of 35 farmers in Devarasanahalli are covered as control. Major effect of groundwater pollution is the downward shift in sugarcane area due to pollution to the tune of 60 percent. In DEPA, all drinking water wells are abandoned and 22 percent of open wells and eight percent of bore wells are abandoned. Farmers in DEPA (control village) realized a net return per acre of Rs. 5489 (Rs. 10892), a reduction of 98 percent due to use of distillery effluent polluted groundwater for irrigation, despite this water being diluted from the Kabini surface water irrigation. The surface water irrigation from Kabini is available only for the first six months from Jan to June.

As the net return from different crops in DEPA are far lower than in control village, a few farmers in DEPA searched for new opportunities including off-farm income by working in the distillery factory realizing Rs 11,142 per family. The off-farm income was Rs. 3571 in control village. Due to exposure to distillery effluent pollution of groundwater, an additional Rs 1432 was incurred towards health expenditure per family per annum in DEPA. The net return per acre for farmers located closer to (away from) lagoon and canal irrigation area was Rs. 4859 (Rs.6227), a reduction of 22 percent. Similarly the repair charges of pumpset were Rs. 2500 (Rs. 937), an increase of 167 percent. These are distinct pointers to the effect of distillery pollution effluents on agriculture. Net loss per acre of paddy (sugarcane) in DEPA was Rs2656 (Rs. 16840). The DEPA farmers richly deserve to be compensated for this loss to this extent by taxing the distillery to the tune of Rupee 1 for every liter of ethyl alcohol produced.

Objectives of the study

1. Economics of irrigation for crops using polluted groundwater and surface water for irrigation
2. Estimation of the economic and environmental effect of groundwater pollution dissipation due to surface water use and recharge
3. Estimation of damage function due to groundwater pollution on the farm economy.
4. Institutional analysis of property rights and law in addressing the predicament

Major Findings of the study

The family size in distillery effluent polluted village is 6 in which 50 per cent of the family members depend on agriculture. In control village, the family size is 7 and 75 per cent depend on agriculture.
The non-farm income per family per annum is higher in distillery effluent polluted village (DEPA) (Rs 11142) compared to control village (Rs 3571).
Area under sugarcane drastically reduced from 52 per cent to 30 per cent of total cultivated area in DEPA.
Area under paddy did not alter after pollution. Thus, farmers considered paddy to be the only crop which can tolerate / withstand, pollution levels.
Crop diversity increased after pollution in DEPA. Area under crops like tomato, ragi, jowar, cucumber and banana increased.
In control village major crops are paddy and sugarcane due to assured supply of good quality of water through out year, which occupy 20 per cent and 50 per cent of the area respectively.

Majority of wells in both polluted and control village are bore wells.
All the drinking wells are abandoned due to pollution in distillery effluent polluted village. In addition, 22 per cent of open wells and 8.8 per cent of bore wells are abandoned, as it could not be used for irrigation.
Even with accessibility to irrigation, cropping intensity and irrigation intensity in distillery effluent polluted village is 174 per cent and 156 per cent respectively which is lower when compared with the control village (the additional health care expenditure incurred was Rs 1992 per family per 196 per cent and 220 per cent respectively)
Farmers using poor quality groundwater incurred an irrigation cost of Rs 28.35 per acre inch per which is twice compared to control village (Rs 13) per acre inch due to increased cost of repairs and maintenance of pumps set due to corrosion induced by pumping distillery effluent polluted groundwater.
Application of distillery effluent polluted groundwater for irrigation has resulted in farmers to incur huge losses in terms of net return per farm (Rs 50, 480) which is less than half of the net return received by farmers in control village (Rs 137850).
The farmers applying poor quality groundwater incurred a loss of 5 qtls of paddy yield when compared with farmers applying good quality water.
Farmers in DEPA had to incur a considerable amount as irrigation cost which is about 15 per cent of the total cost of production of paddy where as in control village only 9 per cent is used as the irrigation cost in total cost of production.
Farmers realized net return from sugarcane of Rs 2954 per acre cultivated using poor quality irrigation water as against Rs 26,249 realized by applying good quality groundwater.
The use of polluted groundwater resulted in allergic dermatitis, skin irritation, vomiting sensation, stomach pain and irritation of eyes. Due to this annum.
There was an increase in the rate of cattle mortality due to consumption of polluted groundwater by cattle. About 17 cattle died in DEPA as against six cattle in control village. Milk yield reduced by 50 per cent. Due to skin rashes, edema and dehydration, the farmers had to incur a medical expenditure of Rs 156 per family per month.
The repair and maintenance cost of pump set has increased twice to the farmers whose wells are situated near to lagoon (Rs 2500) as compared to the farmers away from lagoon.
Net return per farm for farmers located away from lagoon increased by 35 per cent (Rs 6227) when compared with farmers near the lagoon.
Irrigation cost reduced with increase in distance from lagoon. Irrigation cost incurred by farmers closer to lagoon was Rs 219 per farm while it was Rs 19 for farmers away from lagoon.
Due to use of polluted groundwater productivity of all crops reduced in distillery effluent polluted village. There was a 49 per cent decline in sugarcane yield, 27 per cent in paddy, and 75 per cent reduction in yield of tomato.
The loss of human labour days due to health damage resulting from distillery pollution was about 18 days. As a result the farmers incurred an opportunity cost of Rs 900 per annum.
Distance from irrigation canal was negatively associated with net return per rupee of groundwater cost. Thus, as the distance from canal increases the net returns decreases. This shows that the canal water helps in ameliorating pollution hazards but not to a significant effect. The electrical conductivity is also negatively related to net returns showing that as the EC increases the net returns decreases.
The farmers using polluted groundwater for irrigation incurs a net loss of about Rs 19077 per acre of sugar cane production and about Rs 4767 per acre of paddy production.

Implications

Polluters pay principle should be used to account the polluters' inaction in reducing / preventing pollution.
The Karnataka State Pollution Control Board should enact strict policy framework to prevent pollution.
Subsidies should be given to farmers to take up amendments to control pollution damages. Suitable amendments like application of gypsum, green manure should be employed to reduce the effect of pollution on soil.

This Research is published in 5th IWMI-TATA Annual Partners' Meet, March 2006.

Click here to Download this paper, Varuni, C.N., Chandrakanth, M.G., Nagaraj, N. and Srikanthmurthy, P.S., (2006), Externalities of groundwater contamination due to pollution and effects on agriculture and health in Karnataka, 5th IWMI-TATA Annual partners' meet, March 2006