Economic Evaluation of Lined Farm Pond for Supplemental Irrigation to FCV Tobacco in Southern Andhra Pradesh

Abstract

The study was conducted to know the response of flue cured Virginia tobacco to one supplemental irrigation using rainwater harvested in lined farm pond having a capacity of 640 m3 and donor area of 2.0 ha. Cured leaf yield of FCV tobacco improved between 20 and 31% during the period of 6 years (2003-04 to 2008-09). An additional average net income of ₹ 10,565/ ha was accrued from improvement in leaf yield with one supplemental irrigation over control (no irrigation). Discounted cash flow model was employed for measuring the present worth of the pond. Between the two irrigation methods followed for recycling water from the pond, the sprinkler method of irrigation (at 25 mm depth of water) fared better than furrow method (at 40 mm depth of water). Sprinkler method registered higher net present values (NPVs): ₹ 40,044, ₹ 1,62,862 and ₹ 3,51,285; higher benefit-cost ratios (BCRs): 1.30, 1.93 and 2.47; and internal rate of return (IRRs): 24, 29 and 30% at 10, 20 and 40 years of expected lifespan of farm pond, respectively and took less payback period (PBP) of 7 years for recovering the investment made. While in case of furrow method of irrigation, the PBP was 11 years and that of NPV at different scenarios (expected lifespan of 10, 20 and 40 years) was ₹ - 8,105, ₹ 68,999 and ₹ 1,87,289; BCRs: 0.93, 1.48 and 2.02; and IRRs: 10, 20 and 23%, respectively.