At the Little Rann of Kutch, salt production generates much higher economic value (Rs 694 million) than tourism (Rs 276 million) or biodiversity (Rs 136 million) but it’s also more damaging to the ecology. Tourism will help conserve biodiversity because most tourists come for the birds but they have less economic values and hence lesser attention.

1. Economic valuation of landscape-level
wetland ecosystem and its services:
Case study of Little Rann of Kachchh (LRK), Gujarat
Somnath Bandyopadhyay
Nalanda University
Rajgir (BIHAR) 803 116 INDIA
www.nalandauniv.edu.in

2. The ecological facts
Matter cycles; Energy flows
First law of thermodynamics:
Matter is neither created nor
destroyed;
Second law of thermodynamics:
Energy is always lost as heat
(ENTROPY)
Biogeochemical cycles defined:
Water, carbon, nitrogen,
phosphorus, sulphur
Trophic chains discovered:
Grazing chain, detrital chain,
food-webs; 10% law

3. Source:
Ecological
Economics
Principles &
Applications,
Farley and
Daly
Economic Growth and Human Welfare
Welfare in a growing economy is
dependent on natural resources
(e.g. food);
Welfare in a mature economy is
dependent on human resources
(e.g. health care);

4. Socialism collapsed because it did not allow prices
to tell the economic truth.
Capitalism may collapse because it does not allow
prices to tell the ecological truth.
Source: Dahle, 2001.

5. Growth and Development
Quantity Quality
Economy Philosophy Throughput Stock of consumer
goods
Stock of natural
capital
Analogy
Growth More and
more
Maximize Maximize Liquidate Vacuum
tube
Steady-state Do more with
less
Minimize Optimize Maximize Microchip

6. The real debate: “Prosperity without growth”
• What we need is a debate on creating “prosperity without
growth”
• UK’s Sustainable Development Commission (2009) is a good
start.

7. Little Rann of Kachchh
Catchment
Area: 10,500 sq km
35 talukas, 7 districts
140 MCM water
Little Rann of Kachchh (LRK)
Area: 3,570 km2
Rann: 3,384 sq km
Bets: (70) 185 sq km
Latitude: 22O55’-24O35”N
Longitude: 70O30’-71O45’E
Rainfall: 325 - 533 mm
Wild Ass Sanctuary, 1973

8. Study Objectives
• Characterize the wetlands of LRK, with particular reference to variations
in hydrological and salinity regimes;
• Identify unique biodiversity and ecosystem services that support key
economic activities;
• Estimate the economic value of these services, evaluate trade-offs and
propose policy and management options.

9. Wetlands of LRK Total Area- ~5000 sq km
LRK
GoK/MNP
GRK
Kachchh
Saurashtra
Banas R.
Rupen R.
Bambhani R.
Surajbari

10. Biodiversity of LRK
o Last remaining population of ~4000 Wild Asses
(Equus hemionus khur)
o Network of wetlands:
o large assemblage of birds, including many rare
and threatened ones
o two of the total five nesting grounds of Lesser
Flamingos in the world
o large congregation of cranes and other
migratory bird species
o Endemic prawn species – Metapenaeus kutchensis
o Unique assemblage of halophytes, including grasses,
in the fringe and island areas

11. Ecosystem services supporting economic sub-systems
Hydrological Dynamics…Controlled by
• Inflow of - Fresh water- runoff
• Inflow of Saline tidal water from Creek
Formation of Brackish
Water Wetland
Support Ecological System
Prawn, Fish, Zoo and Phyto-plankton
Support Habitat for Migratory Birds
& Other Biodiversity
Prawn Fishing Nature & Wildlife Tourism
Hydrological
Sub- System
Biological
Sub- System
Economic
Sub-System
Outflow of Brackish
water through Creek

12. Local Occupational Profile
Main Occupation No. of
Families
Key Constituents
Agriculture & Labor 32325 Cotton, Jeera; Isabgol, Jowar, Bajra; Wheat, Sesame,
Groundnut, Castor; Mung, Math
Salt Making 3495 Edible salts & industrial chemicals
Animal Husbandry 2676 Milk, wool, meat
Fishery 1300 Fish, Prawn
Tourism NA Nature and Wildlife
Salt making, prawn fishing and tourism are key ‘wetland dependent’
economic sub-systems for people of 108 peripheral villages.

13. Fish/ Prawn capture Biodiversity – migratory birds
Salt production Tourism for Recreation/ Education
Key
Values of
LRK
Wetland

14. Valuation of ecosystem services of LRK

15. Valuation approach
Sector Method Sample Size Sample Distribution
Fishery Market Analysis 62
62
No. of Sites/Dhasis
8 temporary migrant fishing
settlements and 1 fishing village
Salt production Market Analysis FGD Secondary Data
Tourists Travel Cost 40 No. of Resorts covered - 6
Migratory Birds
CVM
Fishers
Farmers
Tourists
Agarias
Other Public
62
91
40
40
60
8 temporary migrant fishing
settlements and 1 fishing village
19 farmers villages cover in 10
talukas of 5 District
No. of Resorts covered - 6

16. Valuation of fisheries

17. Valuation of salt production

18. Valuation of tourism

19. Value of LRK wetland
Total Estimated Annual Value of Wetland System of LRK
Goods & Services Method
Total Annual Value*
(Million Rs.)
Prawn Fisheries Market Revenue Analysis 410.14
Salt production Market Revenue Analysis 694.30
Tourism & Recreation Travel Cost 276.05
Maintenance of
Biodiversity
Contingent Valuation 136.80
Total 1517.29
* For Prawn production and Salt production, we estimated net annual value

20. Important Landscape level Issues
Little
Rann of
Kachchh
Gujarat Part of Catchment Area of
LRK (Dark red line)
• About 10,600 Sq km of total
Catchment
• About 30 small and medium
irrigation schemes in Gujarat
and Rajasthan catchment
• Total Annual Capacity =
1700 MCM
• Average Annual Storage
~ 750 MCM
• Banas River flow reduced
from 70 mcm in 1975 to 4.8
mcm in 1991
• Rupen Riverflow reduced
from 13.2 mcm in 1980 to 6.9
mcm in 1991
• More than 800 check dams
constructed in Gujarat part
• Reduced deposit of organic
detritus, decline prawn growth
• Complete loss of Hilsa fishing

21. Hydroecology of LRK
o Complete loss of Hilsa fishing
o Reduced deposit of organic detritus, decline in prawn growth
Water Type Proportion (%) Key ecological function
Tidal creek water 27.0 Brings larvae of M. kutchensis and other small invertebrate
species which provide food items for M. kutchensis
Direct rain water 51.7 Provide large amount of freshwater to maintain brackishness and
depth, creating suitable habitat for prawn species
Runoff water
from catchment
21.3 Bring nutrient & detritus materials to LRK, essential for growth of
phyto- and zoo-planktons and other food items of M. kutchensis

22. Ecologic disturbance and economic mis-management
Hydrological Dynamics…Controlled by
• Inflow of - Fresh water- runoff
• Inflow of Saline tidal water from Creek
• Outflow of Brackish water through creek
Alteration in Hydro-ecological Dynamics
• Salt infrastructure in Creek..Changes in
Water Flow and / or salinity regimes
• Watershed development in catchment area
- Changes in Water and Nutrient flow
Changes in Ecological
Sub-Systems
Changes in Economic
Sub-Systems
Policy regimes and
institutional capability
Unsustainable resource use
& management practices

23. Understanding the values of ecosystem services
• Values are biased towards the lower end (everything is not recognized,
demonstrated or captured);
• Values keep changing with natural variability, human development and
market conditions;
• Values need to be seen in the light of underlying drivers for ecosystem
services;
• Synergistic and antagonistic dimensions in valuing different ES in the same
ecosystem;
• More than the absolute values, it is important to understand the trends and
what might endure.

24. Prawn production

25. Spatial differences in prawn catch
ONLY LOCATIONAL ADVANTAGE,
no additional access to fishing
tools and labour
o Customary norms to access to
different quality fishing
grounds
o Higher prawn biomass
capture near discharge points
of seasonal rivers
o Best locations are river
mouths close to tidal creeks
20% fishers catch about
50% of total annual catch

26. Salt production
• Diversion of Mud-flats and Creeks for salt work
• Official Salt Lease Area: 21600 ha
• Satellite Imagery based : 44600 ha

27. Tourism in LRK
perception
satisfaction
0
2000
4000
6000
8000
10000
12000
14000
2001-02 02-03 03-04 04-05 05-06 09-10 10-11 11-12 12-13 13-14
NumberofTourists
Year
Indian Foreign Total

28. Sustainability of economic values

29. Conclusion:
economic analysis and policy
oThere is little scope for generating greater value from
salt production without seriously disturbing the
creek ecosystem
oFish catch varies greatly with freshwater availability
ouse-value of biodiversity is growing in LRK despite
natural variability and increasing disturbances, and
osustainable development pathways need to conserve
the flow of ecosystem services in the catchment area
of LRK to support its biodiversity.
Tolerance to wetland
degradation
Human engagement

30. Sustainable growth of economic value
0
2000
4000
6000
8000
10000
12000
14000
Indian Foreign Total
o Tourists prefer flamingoes;
o Flamingoes abandon nests;
o Lack of adequate water;
o Free catchment could increase
depth of LRK by 29 cm;
o Direct improvement of nesting
sites;
o Collateral gains in prawn
fisheries.

31. Implications and recommendation
• Need for a tourism policy to regulate infrastructure and promote services
• Sector study of LRK tourism
• Promotional strategy
• Infrastructure, routes, revenues
• Regular monitoring
• Need for a LRK Landscape Authority to negotiate e-flows and agriculture
• Empower and upgrade BCRLIP Society
• Coordinate with development planning processes
• Organize consultation workshops with stakeholders
• Use biodiversity values as indicators of progress

32. Dr. Arun M Dixit Principal Investigator
Dr. Somnath Bandyopadhyay Co-Investigator
Mr. Lalit Kumar Senior Fellow
Dr. Satyasiba Bedamatta Senior Fellow
Mr. Prashant Kadgi Remote Sensing Expert
Mr. Dipak Nandani Research Assistant
Mr. Ketan Sonara Research Assistant
Mr. Nitin Choudhary Research Assistant
Mr. Pravin Solanki Research Assistant
Thanks from the study team
Special Thanks to
Prof P P Patel
(Geohydrologist, former
Professor, MSU, Vadodara)
Reviewer
(Expert, Env Econ)
Dr Dinesh Kumar
(Hydrologist)
Nitin Bassi
(Hydro-ecologist)

33. Approach for Eastern Himalayas
• Kameng River Basin (Arunachal Pradesh)
• Comprehensive Management Plan
• Framework for monitoring and research
• GIS-based, multi-dimensional, interactive, decision-support
• Ecological functions – soil, water, vegetation, biodiversity etc.
• Ecosystem services and planning issues – hydropower, land-use change etc.
• Socio-ecological linkages – pollinators, gender, traditional institutions etc.
• Economic valuation of ecosystem services and biodiversity
• Network approach – starting with TISS; NERIST, Universities etc.