How much a Drop Pay? Economic Water Productivity in Crop Production: Farm Level Evidence from Coastal District in Odisha, India

Abstract

Water is one of the inevitable inputs for agriculture. The importance of water productivity has been recognized as it measures the benefits derived from agricultural systems relative to water use, of which economic water productivity (EWP) is particularly useful for comparing crops and guiding water resource allocation decisions. Our study explores EWP in Odisha, India, focusing on the coastal district of Balasore. Conducting a primary survey from 100 households through a multi-stage sampling procedure, the study employs a multi-method approach and statistical analyses to assess determinants of EWP in crop production. OLS regression results reveal age, agricultural income, and total input costs positively influence EWP, while crop diversification negatively impacts it. Soil testing emerges as a significant factor in enhancing EWP. Despite disparities in land size and crop choices, farmers exhibit potential for improving EWP. This can be achieved through easy access to finance, understanding value chain addition, market prices and demand, proper crop choices, and, most importantly, adopting collective decisions and sustainable management practices. Ultimately leading to livelihood enhancement within agricultural communities.