India accounts for 18 per cent of the world's population but only four per cent of water resources. Primary water sources for agriculture in India come from surface water, such as rivers, lakes, and canals as well as groundwater which are the primary sources of water for agriculture in India.

It uses an estimated 230 cubic kilometres of groundwater per year—over a quarter of the global total. With 60 percent of irrigation and 85 percent of drinking water supplies dependent on groundwater, water plays a crucial role in agriculture. It is a vital resource for crop irrigation, livestock production, and maintaining the overall health of agricultural ecosystems.

Despite this, traditional flood irrigation methods, which are prevalent in India, lead to significant water losses through evaporation and runoff.

Sustainable water management strategies and water-efficient irrigation technology are needed in agriculture. Drip irrigation and sprinkler systems can significantly reduce water consumption while maintaining crop yields. Techniques such as mulching, conservation tillage, and crop rotation can help conserve soil moisture and reduce water requirements.

Water's role in agriculture has traditionally been undervalued, treated as an abundant resource rather than a finite economic good. According to the World Bank's 2021 report, global water scarcity could cost some regions up to six per cent of their GDP by 2050. The true cost of agricultural water encompasses not only its extraction and distribution but also the environmental externalities associated with its use. Irrigation infrastructure, energy costs, and water quality degradation all contribute to the complex economic equation of agricultural water use.

Moreover, the inefficient use of water in agriculture represents a significant economic loss. The World Resources Institute estimates that 60 per cent of irrigation water is wasted through evaporation or inefficient application methods, translating to billions of dollars in lost productivity annually.

In addition to this, the impact of climate change on agricultural water resources presents a sobering economic challenge. The Intergovernmental Panel on Climate Change projects that for every 1°C rise in global temperature, seven per cent of the global population will face a 20 per cent decrease in renewable water resources. This climate-induced water scarcity creates a multiplier effect on agricultural economics.

Reduced water availability leads to lower crop yields, higher food prices, and increased competition for water resources between sectors. The World Economic Forum estimates that by 2030, there could be a 40 per cent gap between global water supply and demand if current consumption patterns continue.

The agricultural sector is witnessing a technological revolution in water management. Precision irrigation systems, coupled with artificial intelligence and IoT sensors, are transforming how we value and utilize water resources. Studies by the International Water Management Institute indicate that smart irrigation technologies can reduce water consumption by up to 30 per cent while maintaining or improving crop yields.

These innovations have significant upfront costs but offer compelling returns on investment. For instance, drip irrigation systems, despite their initial expense, can achieve water use efficiency rates of 95 per cent, compared to 40-50 per cent for conventional flood irrigation methods. The economic benefits extend beyond water savings to include increased crop quality, reduced labour costs, and improved fertilizer efficiency.

As we observe World Water Day, it's crucial to recognize that investing in efficient water management is not just an economic necessity but an environmental imperative. The agricultural sector must embrace water-efficient technologies, support policy reforms, and adopt sustainable practices. Only through collective action can we ensure the economic viability of agricultural water use for future generations.

(The author is an Environmental Socialist and member of the Rotary Club of Wai in Maharashtra)