IMPROVING WATERSHED MANAGEMENT PRACTICES IN NORTHERN INDIA AN ECONOMIC WIN WIN FOR SUSTAINABLE AGRICULTURE AND RAINWATER HARVESTING

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1 IMPROVING WATERSHED MANAGEMENT PRACTICES IN NORTHERN INDIA AN ECONOMIC WIN WIN FOR SUSTAINABLE AGRICULTURE AND RAINWATER HARVESTING

2 ACCESS TO WATER AND INCREASED BIOMASS PRODUCTIVITY IS A KEY ECONOMIC INCENTIVE UNDER THE HIMACHAL PRADESH MID HIMALAYAN WATERSHED PROJECT

3 OBJECTIVE OF WATERSHED DEVELOPMENT To improve the productive potential of natural resources and increase income of the rural households using socially inclusive, institutionally and ecologically sustainable approaches. To support policy and institutional development to harmonize watershed development projects and programmes across the state in accordance with best practices. To demonstrating cumulative economic benefits at household level eco system level and for the local hydrological regime.

4 WHY Need for a Watershed Programme 2/3 of the country is rain fed conventional irrigation will be high capital intensive For the first time since the mid sixties, the 1990s witnessed a rate of growth of foodgrain production that was lower than the rate of growth of population. While irrigated agriculture appears to be hitting a plateau, dryland farming has suffered neglect. We argue that an increased thrust to rainfed areas through greater emphasis on a reformed watershed programme may hold the key to meeting this challenge. We also show that the productivity of dryland agriculture needs to be developed if food security demands of the year 2020 are to have a realistic chance of being met.

5 WHY Need for a Watershed Programme At the current level of outlay of GoI, it would take around 75 years for watershed treatment to be completed. For the work to be completed by the year 2020, the government needs to allocate around Rs.10,000 crores per annum every year for the next 15 years and that scale of resources is not available at present. In our view, this amount could come from 2 main sources: doubling of current programme outlays on watershed development that would yield around Rs.5,000 crores and External Support Agency

6 Key Economic Benefits Watershed Treatments Direct Harvestable products Water harvesting storage Timber, Softwood, Firewood, fodder Other Non timber Forest Products Indirect Services Watershed Services (hydrological regulation and soil conservation) Carbon Sequestration Bio diversity conservation, pollination services, microclimate regulation for agriculture

7 Need for Watershed in HP Fragmented land Holding and Low Agricultural Productivity High Incidence of Poverty Over Grazing Intensive land degradation with loss of top soil Acute Water Shortage for both Irrigation and Drinking Water Inaccessible Terrain Weak Community Institution Low Livestock Productivity with intense grazing pressure Source sustainability for the overall water resources in the region

8 Key Outline of the Project in HP Business model Improve Productive Potential of Degraded land and Enhance Livelihood Opportunities Demand driven community based integrated approach Application of new technology Land Treatment and Bio Carbon initiative Payment for Environmental Services Inter Departmental coordination

9 Guiding Principles in HP s Watershed Project participation Planning and Ownership transparency and equity The principles of equity must extend to conflict resolution, beneficiary selection, benefit sharing etc. 30% 50% representation of women in the Village Watershed Committee.

10 Sustainable Water Harvesting Tools Embedded in Each Watershed Treatment Participatory Resource Mapping Mapping of Economic opportunities of a water Harvesting Production system Clear distinction of farm production system non farm production system Individual and group enterprises are mapped through Micro planning exercises Mapping of the seed capital needed and cost sharing norms Assess Carbon Credit potential for both above the soil and below the soil and benefit sharing mechanism

11 Business Model PANCHAYAT and NGOs PEOPLE (CBOs) PUBLIC (Govt.) Social mobilization Capacity building Market linkages 3 rd party monitoring Facilitator Farmer s groups Agri business opportunities Federation Formation Micro watershed planning Financial contribution Implementation of works Common property assets SHGs and IGA (equity) Forest Department and Pnachayi Raj system Other Line Depts., Research Institutions, Panchayats Public Financial Institutions (credit) Technical I/p & Credit Flow

12 Economic Incentives Surplus water for both Irrigation and drinking water. Adequate Water for both Rabi and Khariff Seasons with 100% cropping intensity. Introduction of high value crop with doubling the yield. Well established supply around individual agriproducts

13 Economic Incentive So far Household income increased by 50% Group savings yet to be estimated Crop yields increased by 75% Improved crop diversity from 1 2 to 3 4 crops 100% increase of fodder in managed CPR area Improved livestock (stall feeding) and milk production Soil erosion & runoff reduced silt load monitoring is in process Policy Reform: Participatory Forest Management Rule

14 Applying New Technology Modern Tools Remote Sensing Water harvesting Agri business Supply Chain linking to Market Biomass and carbon sequestration Bio carbon emerged as major cross cutting issue in the state Optimally used for Participatory Planning Inclusive Benefit Sharing Mechanism Monitoring & Evaluation Impact Assessment Capacity Building

15 New Approach and Technology Project designed to reduce runoff, soil erosion and enhance biomass productivity through carbon sequestration and catchment treatment in 602 GPs roughly 18% of the Arable and non arable land in the state Maintain sustainable downstream flows, Plantation in catchment with participatory forest rights and rules Testing use of remote sensing and GIS to help estimate run off and relate to water catchment capacity

16 Check Dams Drainage Lines

17 Monitoring Systems and Technology Applications Monitoring Evaluation and Learning Components Impact Assessment M E L Process Monitoring Input Output Monitoring Independent external agency Internal monitoring mechanism Participatory monitoring system Social auditing by the Community

18 WHY BIO CARBON IS SIGNIFICANT FOR CLIMATE CHANGE MITIGATION AND ADAPTATION: GHG CONTRIBUTION, IPPCC, 2007 AGRICULTURE 13.5% FORESTRY 17.4% ENERGY SUPPLY 25.7 % TRANSPORT 13.13% INDUSTRY 19.4% INDUSTRY 19.4% RESIDENCE (urban and rural) 7.9% URBAN SOLIDWASTE 2.8%

19 WHY BIO CARBON IS SIGNIFICANT FOR WATERSHED Catchment treatment involves extensive forestry activities (in both arable and non arable land) Lack of community interest due to strict timber rights weak community based institutions for forest products Past experience of forestry activities in watershed projects is not encouraging Lack of ownership over the standing stock No incentive for protection and conservation unable to comply with optimal hydrological objective NOW WITH THE BIO CARBON SUB PROJECT DIRECT CASH INCENTIVE THROUGH CARBON CREDITS, INCREASED BIOMASS PRODUCTIVITY, RECHARGING LOCAL HYDROLOGY, INCREASE NTFP PRODUCTIVITY

20 KEY OUTLINE OF THE HP BIO CARBON INITIATIVE A pilot initiative in 10,000 ha all in MHWDP area same beneficiary groups PDD is finalized Validation is cehduled in March 09 Inclusive based benefit sharing mechanism already in place A partnership model between panchayat, forest department, community and the project Three types of land involved: degraded non arable private land, common land and undemarcated forest land Lease agreement for years between government and the community is in the process of being finalised

21 KEY OUTLINE OF THE HP BIO CARBON INITIATIVE It follows CDM approved methodology Initial agreement with the community will be for 20 years PES: community receives cash incentive against protection and conservation and also pays for O&M cost Using the same framework state intends to replicate and tap open market for CER GIS monitoring of the MHWDP will be used for monitoring of the bio carbon sub project

22 Flow of benefits Economic Ecological Socio Economic NTFPs Fuelwood Fodder Watershed protection Biodiversity conservation Soil quality improvement Involvement of the poorest of poor Capacity building of communities particularly women in management of carbon finance Institutional development Carbon revenue $$$$ Increased crop productivity Quatity

23 CRITICAL ISSUES Complex methodologies CDM high transaction cost Great deal of capacity building required at the project, forest department and PRI system PES is yet to be an integral part of the overall regulatory reform Big gap between demand and supply of PES Political willingness CDM eligibility Alternative to CDM bio carbon provisions XXXXXX unable to negotiate a good price for bio carbon Is forestry a priority under climate change and GHG reduction agenda???.yes..only in Costa Rica

24 WAY FORAWD FOR WATERSHED DEVELOPMENT IT IS A BASIC STEP FOR WATER RESOURCE MANAGEMENT OFTEN IGNORED IN LARGE WATER RESOUREC PROJECTS IT INTEGRATES UPSTREAM AND DOWNSTREAM WATER RELATIONSHIPS IT ENSURES LOCAL ECONIC SUSTAINABILITY FIRST THAT ADDRESSING REGIONAL WATER RESOURCE SUSTAINABILITY WHICH IS DIRECT CUMULTAIVE IMPACT OF THE WATERSHED DEVELOPMENT.

25 Where are we? Agri Business Model are well established with high value crops and supply chain with market opportunities Community groups are graduated to federation groups with a higher negotiation power Cumulative economic values have started manifesting in dealings of village level groups as well as for individuals at the household level Net economic benefits vis à vis investment in water harvesting structures??????? How does one differentiate between direct economic benefit due to watershed and long tern cumulative economic benefits through in a subsistence economy with marginal land holdings???? What short of qualitative indicators one should use to monitor such economic benefits???? Economic benefit in watershed / water harvesting interventions is a balance between conservation vis à vis production