Factors influencing groundwater markets in Rajasthan

A study was carried out in the arid and semi arid districts of Rajasthan state to determine factors influencing groundwater markets. To analyze the factors influencing the ground water markets, primary data were collected from 238 farmers with the help of pre-structured schedule in the study area. Binary logistic regression was used to identify the factors affecting groundwater buying and selling decisions of the farmer. The results indicated that with one unit increase in the size of land holdings with farmers, the probability of buying groundwater will reduce by 0.657 per cent, whereas, with increase in non-farm income it will reduce by 0.061 per cent, respectively. Head of the family with higher education had good managerial ability and preferred to sell surplus water for extra earnings. The study recommmends that with education in the groundwater markets practices, the selling of groundwater may be induced, whereas, number of farm fragmentations will increase the buying of groundwater.