ECONOMIC ANALYSIS OF DRIP IRRIGATION IN OIL PALM CULTIVATION IN EAST GODAVARI DISTRICT OF ANDHRA PRADESH
KrishiKosh
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Title |
ECONOMIC ANALYSIS OF DRIP IRRIGATION IN OIL PALM CULTIVATION IN EAST GODAVARI DISTRICT OF ANDHRA PRADESH
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Creator |
MRUDULA, B
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Contributor |
Vishnu Sankar Rao, D
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Subject |
irrigation, costs, oils, trickle irrigation, irrigation methods, crops, subsidies, area, economics, manpower
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Description |
The present study was conducted in East Godavari district of Andhra Pradesh with the major objectives to (1)analyze the cost structure of drip irrigation system in Oil palm cultivation (2) to appraise the economic viability and financial feasibility of installing drip irrigation system in Oil palm cultivation with and without subsidy components (3) to assess the comparative economics and benefits of drip irrigation system over conventional method of irrigation and (4) to study the possible constraints in installation, execution and maintenance of drip irrigation system in Oil palm cultivation and offer relevant suggestions. A total sample of 120 farmers were selected randomly i.e., 60 drip irrigated and 60 conventionally irrigated farmers. The important analytical tools employed in the study were the project evaluation techniques such as PBP, NPW, B-C Ratio, IRR, N/K Ratio and Switching values were used to study the financial feasibility of Oil palm plantations with drip method of irrigation and conventional method of irrigation. The per hectare total cost for the life period of 25 years with DMI in Oil palm was Rs.23, 16,804 and Rs. 12, 15,234 for CMI. The per hectare total establishment cost for DMI in Oil palm was Rs. 1,19,733 and Rs. 86,830 for CMI. The per hectare total maintenance cost for DMI in Oil palm was Rs. 21,97,071 and Rs. 11,28,404 for CMI. The cost of drip irrigation system was Rs. 2, 60,000 and with 90 per cent subsidy was Rs. 26,000 in Andhra Pradesh under APMIP. The higher WUE of 15.35 kg/ha/mm was obtained in DMI to that of CMI system of 5.03 kg/ha/mm. The WUE in terms of water consumed to produce one unit of output was 65.11 mm/ha/kg and 198.77 mm/ha/kg for DMI and CMI respectively. Water saving is 32 per cent in DMI compared to CMI. The total yield per hectare for the entire economic life period was 503 tonnes under DMI and 224 tonnes under CMI. The total income obtained from one ha during the entire life period of Oil palm under drip irrigation was Rs. 31, 50,792 and Rs.15, 28,416. The payback period, net present worth, benefit-cost ratio, IRR and N/K ratio in the study area for drip method of irrigation was found to be 0.67 years, Rs. 2, 91,259, 1.87, 50.52 and 10.92 respectively. Similarly for conventional irrigation the Payback period, Net Present Worth, B-C ratio, IRR was 1.02 years, Rs. 98406, 1.43 and 41.46 respectively. The drip irrigation is financially viable compared to conventional irrigation. The payback period, net present worth, benefit-cost ratio and IRR based on incremental costs and benefits between two irrigation systems in Oil palm were 0.33 years, Rs. 1, 89,020, 2.74 and 53.90 per cent respectively. The studies also showed that the drip irrigation in Oil palm is viable even without subsidy both for drip system and plant material. It is understood from the study that capital cost required to install drip irrigation is relatively high. Therefore, measures can primarily be taken to reduce the cost of drip irrigation equipment by promoting production and supply of low cost drip systems. Considering the high yield per hectare through drip method of irrigation in Oil palm cultivation compared to conventional method of irrigation, drip irrigation technology should be expanded to all the Oil palm cultivation areas as a mandatory as majority of the farmers are large farmers and is financially viable even without subsidy. Subsides related to plant material, cost of cultivation, INM, IPM, fertilization, tree guards, vermicompost pits, intercrops etc can be reduced. Subsidy related to drip systems, diesel or electric pumps, bore wells land water harvesting methods can be continued to bring entire Oil palm area under drip irrigation methods as it is more productive and viable. Since Oil palm plantations with DMI are viable financially and economically even without subsidy in drip, subsidies can be rationally reduced. As an alternative for reduction of subsidies, loans from banks shall be provided for adoption of DIS in Oil palm cultivation. |
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Date |
2016-06-21T13:35:30Z
2016-06-21T13:35:30Z 2012 |
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Type |
Thesis
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Identifier |
http://krishikosh.egranth.ac.in/handle/1/67587
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Language |
en
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Relation |
D9381;
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Format |
application/pdf
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Publisher |
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
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