Is water tariff reform possible in India ? : the case of Haryana producers
Since 1991 India is undertaking a process of liberalization of the agricultural sector as part of a structural adjustment program. This process will strongly affect the irrigation patterns because it will induce a payment for the electricity used for pumping. Can farmers react positively to a change in water costs policies which might imply changes in the balance between activities within the production systems? Will this policy increase structural problems? Will it have a positive or negative impact on food security? In this paper, a mathematical model is used to simulate farmers reactions to different water policy scenarios in Haryana (Northern part of India) and analyze their impact. This type of policy will have a low but positive impact on the expenditures of the Electricity Board and the Haryana State, but it will hinder farmer's income (in some cases even under the minimum standards) and increase the risk faced by farmers, due to the higher costs. Also, the rural population might confront lower nutritional intake, and the condition of the water resource might not be improved. In order to prevent complex and sometimes unfair impacts for the farmers, a water price policy will require "adjusted" tariffs according to the category of farmers.