Economic Implications of Borewell Failure and Groundwater Irrigation Economics in North Eastern Karnataka, India
P. Arpitha *
Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur, Karnataka, India.
B. S. Reddy
Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur, Karnataka, India.
Amrutha T. Joshi
Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur, Karnataka, India.
M. Satish Kumar
Department of Agricultural Economics, College of Agriculture, University of Agricultural Sciences, Raichur, Karnataka, India.
K. K. Shashidhara
Department of Agricultural Extension Education, College of Agriculture, University of Agricultural Sciences, Raichur, Karnataka, India.
V. B. Wali
Department of Agricultural Statistics, University of Agricultural Sciences, Raichur, Karnataka, India.
*Author to whom correspondence should be addressed.
Abstract
Groundwater irrigation plays a crucial role in sustaining agricultural production in North Eastern Karnataka, but increasing groundwater stress and borewell failures have raised the economic risks faced by groundwater-dependent farmers. The study analysed borewell failure, investment risk and groundwater extraction costs in six districts, namely Bidar, Kalaburagi, Yadgir, Raichur, Koppal and Ballari. Primary data were collected from 360 groundwater-irrigated farmers during 2024–25 through multistage random sampling. Negative binomial distribution analysis was employed to estimate borewell success and failure probabilities and the number of wells required to obtain one successful borewell. Borewell investment, ownership costs and groundwater extraction costs were estimated to assess the economic implications of groundwater irrigation. The results revealed substantial spatial variation in the probability of borewell success, ranging from 0.15 in Koppal to 0.40 in Raichur, with failure probabilities of 0.85 and 0.60, respectively. The number of wells required to obtain one successful borewell was highest in Koppal (6.66) and Ballari (6.25), compared with Raichur (2.50) and Yadgir (3.12). Consequently, the investment required for one successful irrigation borewell was highest in Ballari (₹7,39,024) and Koppal (₹6,33,367), while it was lower in Yadgir (₹2,15,011) and Raichur (₹2,26,802). Groundwater extraction costs were highest in Ballari (₹300.80 per acre-inch) and lowest in Bidar (₹149.91 per acre-inch), with an overall average of ₹207.08 per acre-inch. The negative externality due to borewell failure averaged ₹38,394 per farm per annum. The findings highlight substantial spatial differences in groundwater-related investment risk and economic burden. District-specific groundwater assessment, recharge enhancement, micro-irrigation and risk-sensitive financial support are important for improving the sustainability of groundwater irrigation in North Eastern Karnataka.
Keywords: Groundwater irrigation, borewell failure, investment risk, groundwater extraction cost, north eastern Karnataka