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2022 | OriginalPaper | Chapter

15. Economic Impact of Drip Irrigation in India: An Empirical Analysis with Farm Level Data

Author : A. Narayanamoorthy

Published in: The Irrigation Future of India

Publisher: Springer International Publishing

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Abstract

Sugarcane is one of the important water-intensive crops cultivated predominantly using conventional flood method of irrigation in India. Not many farm level survey based studies are available focusing on the impact of drip method of irrigation on different parameters of sugarcane crop. In this chapter, using the farm level survey data collected from two districts in Maharashtra, an attempt was made to evaluate the impact of drip method of irrigation on cost of cultivation, productivity, water saving, electricity saving and economic viability of drip investment in sugarcane. It was found that productivity of sugarcane cultivated under drip method of irrigation was 23 percent higher than that of the crop cultivated under flood method of irrigation. While water saving was about 44 percent per hectare due to drip method of irrigation, electricity saving was estimated to be about 1059 kwh/ha. Estimated benefit cost ratios with different discount rates indicate that drip investment in sugarcane cultivation remains economically viable even without subsidy. The study suggests that reduction in capital cost required for drip set, restructuring subsidy programmes and effective (quality) extension network are essential for promoting the cultivation of sugarcane under drip method of irrigation.

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previous chapter Extent and Scope for the Adoption of Water Saving Technologies: An Analysis of Drip and Sprinkler Irrigation in India

next chapter Summary and Policy Pointers

Monetary values used in this chapter are in Indian Rupees (INR) represent value in current prices, unless otherwise specified.

The details of major schemes with micro-irrigation as a component or focused on micro-irrigation with subsidy by the Union Government since 1992 can be seen in FICCI (2016).

During 1998–99, sugarcane accounted for about 2.39 percent (about 0.530 million hectares) in the gross cropped area of Maharashtra state. This is relatively higher than the national level average of area under sugarcane. Not only this, the growth rate in area under sugarcane in Maharashtra was also very high (4.63 percent per annum) as compared to the national average growth rate (2.07 percent) between TE 1972–73 and TE 1996–97.

A detailed discussion on the state-wise development of drip method of irrigation from mid-1980s onwards is presented in Chap. 14 of this book.

Application of fertilisers through water is called fertigation. It substantially reduces consumption of fertilisers and wastages by leaching as compared with methods like basal and top dressing. As a result, efficiency of input increases in drip method of irrigation.

See, Narayanamoorthy (1992) and Alstorm (1990) for more details in this regard.

Our cost of cultivation refers to cost A₂, which includes all actual expenses in cash and kind incurred in production by owner plus rent paid for leased-in land. See, CACP (1998) for more details about different cost concepts.

Benefit-cost analysis using discounted rate technique for the entire life period of drip investment is presented separately in section seven of this chapter.

Our profit refers to gross income minus cost A₂. This should be appropriately called as farm business income.

Results of different research stations for different crops are available in INCID (1994) and NCPA (1990).

In our survey, none of the farmers reported that they could increase area under irrigation after installing drip technology in their field. However, they were able to irrigate the crop at a required interval even under the condition of water scarcity because of using drip technology.

For more details regarding the trends and determinants of electricity consumption in Indian agriculture, see Narayanamoorthy (1999a).

In an earlier study related to banana and grapes, it was found that saving of electricity due to the adoption of drip method of irrigation was about 2430 kwh/ha for banana and about 1470 kwh/ha for grapes. For details in this regard, see Narayanamoorthy (1996a).

For more details in this regard, see Shah (1993).

Price of sugarcane prevailed at that time of survey (INR 800/ tonne) was considered for calculating the additional benefits in monetary terms.

This is only the cost of drip system and does not include the costs of well and pumpset, which are assumed as a sunk cost for all the adopters and non-adopters of drip method of irrigation.

The average investment (in current prices) required to irrigate one hectare of irrigation through major and medium irrigation schemes in India was estimated to be INR 73556 during seventh plan (1985–90) period (Narayanamoorthy, 1994).

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Title: Economic Impact of Drip Irrigation in India: An Empirical Analysis with Farm Level Data
Author: A. Narayanamoorthy
Publisher: Springer International Publishing
Book: The Irrigation Future of India
Print ISBN: 978-3-030-89612-6

Electronic ISBN: 978-3-030-89613-3

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-030-89613-3_15

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