Social Benefit Cost Analysis of Drip Irrigation

D. Suresh Kumar ()
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D. Suresh Kumar: Agricultural University

Chapter Chapter 7 in Micro Irrigation Systems in India, 2016, pp 113-131 from Springer

Abstract: Abstract Micro irrigation has received much attention from the policy makers and others for its perceived ability to improve water productivity. Realising the significance of using micro irrigation system as a demand management strategy, an attempt has been made in this chapter to examine the social benefit-cost analysis of drip irrigation. As found in many earlier studies, the drip irrigation resulted in significant increase in yield over the flood method of irrigation. The analysis of economics of crop cultivation in drip and control villages revealed that the drip method of irrigation has significant impact on resource use, cost of cultivation, yield of crops and farm profitability. The social benefit-cost analysis revealed that the social benefits exceed the social costs in the water and labour scarce regions. Thus, one can conclude that the drip irrigation is a viable and more beneficial in regions where there is more water scarcity. The social benefit-cost ratio (SBCR) in over-exploited regions is 5.19 and 4.97 respectively without and with subsidy at a discount rate of 2 %, while it is 4.56 and 4.33 in the semi-critical regions. This clearly shows that wider adoption of drip irrigation produces sufficient social benefits and continuing support through subsidies will save water and energy and help achieve sustainable management of groundwater resources. Hence, continuing public support for the wider adoption and promotion of drip irrigation technologies appears warranted.

Keywords: Drip irrigation; Social-benefit cost analysis; Externalities; Impacts; Tamil Nadu (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-981-10-0348-6_7

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