The interlinkages between agricultural trade and groundwater sustainability in India

Agriculture trade pattern of India has witnessed major changes over the years. Focusing on agriculture trade composition and trade flow pattern, this paper found out that in the post WTO regime agriculture exports have grown but imports have a higher share. This scenario is different particularly with reference to trade of water-intensive crops wherein exports have an upper hand. The paper has been broadly divided into two sections. In the first section, using secondary level data we have made an assessment of trade performance, concentration or diversification of Indian agriculture since World Trade Organisation (WTO) formation i.e. 1995. In the next section, we have focused upon the trade pattern of selected high water consuming crops and explored the linkages between trade of such crops and groundwater exploitation in different states of the country. Data anatomisation reveals that the agriculture export has grown at a compound rate of 16.2 percent whereas import has grown at the rate of 18.1 percent during 1995–2015. Considering export-import of water consuming crops we find an opposite picture wherein the exports have surged while the imports have declined, sugar being the only exception. Study findings depict positive correlation between production of high water guzzling crops and groundwater use which exacerbates groundwater depletion. The paper suggests India to use water as a negotiating tool in trade related matters. In addition, farmer's crop choice decisions in different states to be based as per the hydrogeological conditions. Further, reduction in subsidies which promote over-exploitation of groundwater, incentivizing farmers to shift from high water consuming to low water consuming crops, crop choice based on hydrogeological conditions, technology adoption and upgradation for promoting water efficiency in irrigation are few possible solutions