Water Pricing and Irrigation Economics: An Overall Assessment of Policy, Practice, and Sustainability in Indian Agriculture

Irrigation accounts for about 80 percent of India’s freshwater withdrawals, making water pricing critical to ensure both efficient use and equitable access. Traditionally, tariffs for irrigation have been area‑based and heavily subsidised, leading to poor cost recovery and weak incentives for conservation. In Maharashtra, the Maharashtra Water Resources Regulatory Authority (MWRRA) has introduced structured volumetric tariffs that provide greater transparency. However, challenges remain: collection rates are low and political pressures often keep charges below cost. Given the semi‑arid climate and reliance on both canal and groundwater irrigation, a nuanced understanding of water pricing is essential to balance farmer livelihoods with sustainability.