Economic Impacts of Collective Farming and Groundwater Management in Drought-Prone Regions: A Solapur Case Study

This review evaluates the economic impact of Farmer Producer Companies (FPCs) under the Atal Bhujal Yojana (ABY) on per capita economic value in Solapur district's Gram Panchayats, a drought-prone region in Maharashtra, India. It explores the intersection of sustainable groundwater management and economic empowerment through collective farming models, addressing challenges in water-scarce agricultural systems. A systematic literature synthesis was conducted, integrating peer-reviewed articles, government reports, and case studies from 2015–2025, alongside analysis of Solapur's agricultural and economic trends. Findings indicate that FPCs, supported by ABY's water budgeting and monitoring tools (e.g., piezometers, water flow meters), enhance per capita income by 10–15% through improved agricultural productivity, with jowar yields increasing from 1.2 to 1.5 tons/ha, and cost savings of ₹5,000–7,000 per hectare via collective procurement. Water-use efficiency improved by 20%, driven by community-led water management, while market access through value-added products like organic jowar flour boosted incomes. ABY's community-driven approach fosters groundwater conservation and inclusive FPC governance, particularly for women. The study highlights policy implications for scaling FPCs, including expanded training, streamlined funding, and integration with schemes like MGNREGA. These findings contribute to sustainable agriculture and rural economic development, offering scalable solutions for drought-prone regions. Future research should explore longitudinal impacts and comparative analyses across Maharashtra's water-stressed districts.