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ECONOMIC ANALYSIS OF DRIP IRRIGATION IN OIL PALM CULTIVATION IN EAST GODAVARI DISTRICT OF ANDHRA PRADESH

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Title ECONOMIC ANALYSIS OF DRIP IRRIGATION IN OIL PALM CULTIVATION IN EAST GODAVARI DISTRICT OF ANDHRA PRADESH
 
Creator MRUDULA, B
 
Contributor Vishnu Sankar Rao, D
 
Subject irrigation, costs, oils, trickle irrigation, irrigation methods, crops, subsidies, area, economics, manpower
 
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.
 
Date 2016-06-21T13:35:30Z
2016-06-21T13:35:30Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67587
 
Language en
 
Relation D9381;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY