Co-operatives in the Area of Canal Water Distribution for Irrigation

Co-operatives in the Area of Canal Water Distribution for Irrigation Lessons from an Innovative Experiment in India Presentation at Congress, 2007 at University of Saskatchewan, Saskatoon, Canada, 30th May, 2007. By Dr. Amita Yadwadkar, University of Pune, Pune, India. amita_dy@unipune.ernet.in

Introduction • Public goods provision is being privatised in India. • Public –private partnerships are being encouraged. • The Co-operative model too is being tried. • Till now co-operatives were generally used in provision of private goods and were fairly successful in this. • Now, co-ops being used in provision of public goods.

Introduction contd…. • Water supply for irrigation from dams was and is in the domain of government. • Of late, however, the co-operative model is now being used in this area. • This is mainly by instituting Water User Associations (WUA)s. • A pioneering attempt at this was seen as a pilot project at a village named Chanda, in the state of Maharashtra in India in the year 1989. • The success of this has spawned several WUA s in Maharashtra. • Currently, 534 WUAs are operational (2003).

Introduction contd… • Now, WUAs have been given statutory status through the Maharashtra Management of Irrigation Systems by Farmers Act, of 2005 (MMISFA). • By this Act, the Maharashtra government will sell water only to WUAs and not to individual farmers.

Objective of this Study • Objective of the study is to see if the co-operative as an institution can contribute to bringing about a more efficient and equitable allocation of a public good/common property resource where the government system could not. • This study is based on the case of the pilot WUA at Chanda and experiences from other places.

Structure of the Paper • 1. Working and Problems in the Government System. • 2.Causes for Undertaking the Experiment of Co-operative in Water Distribution. • 3.Features of the Co-operative/WUA. • 4.Impact of the Working of the Co-operative /WUA. • 5.Experiences in Other WUAs. • 6.Lessons From the Working of the Chanda WUA. • 7.Are co-operatives like this viable? What can make them viable?

1.Working of the Government System • The farmers in the village had to give their water requirement for the coming season in acreage terms to the Irrigation dept.’s (ID) section office, six kms. away from the village. • All these requirements would be put together and the section officials would draw up the schedule of release of water accordingly. • This schedule was put up in the section office where the farmers had to again go and look it up. • Accordingly, water would be released and farmers had to keep their fields ready.

1.Working of the Govt. System contd.. • The water rates were fixed on acreage basis and decided at the level of state government. • Rates were subsidized, covering only operation and maintenance cost and salaries of maintenance personnel. • Rates for food crops were nominal at Rs. 60 /acre but sugarcane (cash crop) attracted a higher rate of Rs. 400/acre.

1.2 Problems in the Government System • Only one man was in charge of distributing water for one village. • Parallel market in water had emerged in Chanda village. • Farmers and the lone government official were trading in water at lower rates. • This resulted in revenue shortfall for govt., although water was being lifted from the canal.

1.2 Problems in the Government System contd.. • Since water was being cheaply traded, there was wastage and inefficient use of water. • There was inequity in distribution of water, because there was exclusion in the parallel market that had emerged. • Only the rich and big farmers could get water in days of scarcity of water.

2. Emergence of A Co-operative for Canal Water Distribution • Low revenue recovery and inequitable distribution of the canal water were the main causes that led to this idea of co-operative being mooted. • The idea was put forth by an Non Governmental Organization (NGO) and the government’s irrigation department. • After much convincing of farmers, society was formed in 1989 with 92 members. • The President of this WUA was meticulously chosen by the NGO and govt. from 6 to 7 candidates to ensure the success of the venture. So were the other office bearers.

3.Features and Working of the Co-operative • The society or the WUA bought water from the govt.’s irrigation department (ID) at volumetric rates. • This was sold to members on the basis of crop area irrigated. • Rates of most crops were continued as before i.e. as they were in the govt. system. • Rate for sugarcane was revised and lowered from Rs. 400/acre to Rs. 100 per acre. • Rates were decided by the co-operative.

4. Impact of Co-operative: Phase I • The Chanda society worked well for three years. • Water allocation was efficient. Schedules were strictly adhered to and water was conserved. • Less paper work was seen in this system for farmer-members. Reduction was also seen in transactions costs. • Better maintenance of sub canals was undertaken. • Society could generate a surplus, distributed to members.

4. Imapct of Co-operative: Phase II • In 1994, elections took place and a new governing body was elected. • Subsidy given by government in the first 3 years to the society was no longer available. • New leader and the office bearers were not too well versed in aspects of measurement of water, flow and irrigation issues. • Hence water measurement and its distribution could not be done adequately, equitably and efficiently. • Lack of discipline was seen in scheduling and releasing water. • Surplus was no longer being generated by society.

5. Experiences of Other WUA • Review of Literature shows that evidence on the working of WUAs at other places is mixed. Moreover, most WUAs are still in formative stages so it is early to conclude about their working. • So, once these WUAs become operational for some time, only then the problem areas will become known. • Gulati’s study of WUA from Rajasthan and Karnataka indicates that small groups comprising of farmers of different income levels would be more successful.

6.Are Water Distribution Co-ops Viable? • The cooperative model as applied for distribution of canal water has the potential to allocate water efficiently and equitably. • This is because peer pressure can be used to collect water charges and also to avoid misquoting of irrigated areas by farmers members. • Peer pressure can be used to ensure that water is received even by farmers whose fields are further away from the canal. • These incentives and pressures are absent in the government system.

6. Are Water Distribution Co-ops Viable? contd… • Some possible roadblocks in such a co-op. are: 1.Members of a co-op. may lack the necessary competence to measure water and calculate water dues properly. • This is because there are no measuring devices at the level of the distributaries or field canals. • Distributaries and field canals are not properly lined resulting in seepage losses.

6.Are Co-ops Viable contd.. 2.Members having wells in their fields draw water from these which has partly come from the seepage of the canal water. • Although this is chargeable it is difficult to monitor and recover these charges.

7. How Can Co-ops Be made Viable? • The following measures may ensure better success for co-operatives in canal water distribution: • 1. Better maintenance of canals, and proper lining of distributaries and field canals to avoid seepage losses. • 2. Deploying of competent persons (either of the government or any other agency) to assist the co-ops in aspects of water measurement as well as society management. • 3. As a fundamental and long term solution, the idea of laying pipes to deliver canal water to the fields can be explored. This would reduce seepage and evaporation losses and make measurement easy.

7. How Can these Co-ops be made Viable contd… • However, till these solutions are brought about, the quality of leadership and office bearers is of utmost importance to ensure that the co-operative as an institution can be successful in ensuring efficient and equitable distribution of canal water for irrigation.

Thank You !

Co-operatives in the Area of Canal Water Distribution for Irrigation