Vol. 7, Issue 9, Part L (2025)

Groundwater has become the most critical source of irrigation in India, particularly in semi-arid and dry regions where rainfall is uncertain and canal irrigation is inadequate. In the Northern Dry Zone of Karnataka, dependence on groundwater has led to the emergence of informal groundwater markets, where well-owners sell water to other farmers through local arrangements. This study aimed at assessing the economic impact of groundwater marketing, the factors influencing farmers’ participation, and its role in ensuring irrigation access and profitability. Primary data were collected from 120 farmers across 12 villages in Belagavi, Bagalkot, and Vijayapura districts of Northern Karnataka. The results revealed that self-users constituted 46.66 percent of the sample, while 27.50 percent were sellers and 25.84 percent buyers. Groundwater markets were found to provide substantial economic gains, with the highest gross benefits recorded in perennial crops (₹1,37,364/ha), followed by kharif, summer, and rabi crops. Non-participation was mainly due to insecurity regarding groundwater availability (82.14%), lack of surplus water (75%), and increased area under high water-intensive crops (62.50%). Sellers were motivated primarily by strong demand from neighbours (84.61%), surplus water availability (77.28%), and the opportunity for additional income (68.12%). The study concludes that groundwater markets improve irrigation access, enhance farm incomes, and support crop diversification, but they also contribute to rising pressure on depleting aquifers. For long-term sustainability, measures such as groundwater recharge, regulation of borewell drilling, and promotion of water-saving irrigation technologies are essential. These findings underscore the dual role of groundwater markets as both an opportunity for agricultural growth and a challenge for sustainable resource management in Karnataka’s dry zones.