Food security, irrigation, climate change, and water scarcity in India

Abstract:

This paper uses an advanced CGE model (Taheripour et al., 2013) coupled with hydrological projections of future water scarcity and biophysical data on likely crop yields under climate change to examine how water scarcity, climate change, and trade jointly alter land use changes across the Indian subcontinent. Climate shocks to rainfed and irrigated yields in 2030 are based on the p-DSSAT crop model, RCP 2.6, as reported under the AgMIP project (Rosenzweig et al., 2013), accessed through GEOSHARE (Villoria et al, 2014). Results show that, when water scarcity is ignored, irrigated areas grow in the wake of climate change as the returns to irrigation rise faster than for rainfed uses of land within a given agro-ecological zone. When non-agricultural competition for future water use, as well as anticipated supply side limitations are brought into play (Rosegrant et al., 2013), the opportunity cost of water rises across all river basins, with the increase ranging from 12% (Luni) to 44% (Brahmaputra). As a consequence, irrigated crop production is curtailed in most regions (Figure 1), with the largest reductions coming in the most water intensive crops, namely rice and wheat. By reducing irrigated area, which tends to have much higher yields, the combined effects of water scarcity and climate impacts require an increase in total cropped area, which rises by about 240,000 ha. The majority of this area expansion occurs in the Ganges, Indus, and Brahmari river basins.

Overall crop output falls by about $2 billion, relative to the 2030 baseline, with imports rising by about $570 million. The combined effects of climate change and water scarcity for irrigation also have macro-economic consequences, resulting in a 0.28% reduction in GDP and an increase in the consumer price index by about 0.4% in 2030, compared the baseline. The national welfare impact on India amounts to roughly $3 billion (at 2007 prices) in 2030. Assuming a 3% social discount rate, the net present value of the annual reductions in welfare will be about $24.3 billion for 2008 to 2030.

This study highlights the importance of considering the interplay between climate and water availability in assessments of food security.