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Social Costs and Benefits Analysis of Drip Irrigation System in Northern Maharashtra

Water is going to be increasingly scarce and thereby limits the agricultural development in almost all the corner of entire world. Efficient development with proper management of the scarce water resources is the key determinants for achieving food security not only for India, but for the entire wor...

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Published in:Economic affairs (Calcutta) 2018-12, Vol.63 (4), p.1061-1065
Main Author: Gorain, Subrata
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description Water is going to be increasingly scarce and thereby limits the agricultural development in almost all the corner of entire world. Efficient development with proper management of the scarce water resources is the key determinants for achieving food security not only for India, but for the entire world. This paper has analyzed and assessed the associated social costs and benefits with drip irrigation system. The adoption of drip irrigation has significant bearing on the society as a whole and generates various positive and negative externalities. The different components of social benefits are value of energy saved, value of water saved and off-farm employment generation. On the other side, cost of subsidy to the government and forced investment on well are the two components of social costs. The value of electricity saved in monetary terms was observed to be ' 20.3 and 11.01 thousand per ha in sugarcane and banana crops, respectively. Economic value of water used under drip and flood irrigation was computed using CobbDouglas production function. Economic value of water used in sugarcane was 19.90 '/m3 and banana cultivation was observed to be 19.13 '/m3. The quantity of water saved by adoption of drip irrigation, in monetary terms was found to be ' 1.1 lakh and ' 69.9 thousand rupees per ha of sugarcane and banana, respectively. As the life span of a drip system is around 10 years, the social costs and benefits have been discounted for 10 years to get the actual social benefit cost ratio. The social benefit cost ratio is found to be 2.08 at 10 per cent discount rate.
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subjects Agriculture
Bananas
Costs
Crops
Discount rates
Economic models
Employment
Energy
Externality
Farms
Groundwater
Irrigation
Population
Production functions
Productivity
Social costs
Society
Solar energy
Studies
Subsidies
Sugarcane
Water markets
title Social Costs and Benefits Analysis of Drip Irrigation System in Northern Maharashtra
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