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2015 | OriginalPaper | Buchkapitel
9. Demand Side Economics of Micro-irrigation
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Abstract
Farmers invest relatively on the demand side of groundwater, compassing investment on borewells, irrigation pump sets and drip/sprinkler irrigation system/s. In this chapter, the economic benefits from micro-irrigation in the eastern dry zone of Karnataka are discussed with field data from drip irrigation farmers (DIF) and conventional irrigation farmers (CIF) drawing groundwater from irrigation wells. With the average size of holdings in DIF (CIF) being 3.48 ac (2.77 ac), major crops were mulberry and grape (mulberry and tomato). Investment per functioning well in DIF (CIF) was ₹ 166,223 (₹ 131,551) as DIF had a higher rate of well failure. The well failure rate for DIF (CIF) was 33 % (19 %). The annual negative externality cost was higher for DIF (₹ 8404) compared to CIF (₹ 4590). Groundwater extracted per farm in DIF (CIF) was 60 ac-in. (94 ac-in.). The net returns per acre-inch of groundwater, net returns per rupee of water cost on DIF (CIF) were ₹ 457, 2.80 (₹ 194, 1.20), respectively.
Using the intercept and slope dummy in the net returns function, it was found that by adapting drip irrigation the net returns per farm increased from ₹ 15,292 to 25,203 and the marginal productivity of water increased from ₹ 465 to 1960. One acre inch is the same as one hectare centimeter, holding around 22611 gallons or 102654 liters of water. Using the discriminant function to find the explanatory variables that differentiate the DIF and CIF, it was found that variables such as cropping intensity, water used (acre-inches) and net returns per acre-inch of water were the discriminant variables. Hence, the government policy needs to be oriented towards these variables to motivate farmers to adopt drip irrigation. In addition, it is essential to promote irrigation literacy to enable farmers to use water efficiently.