Year: 2016 | Month: August | Volume 9 | Issue 4
Financial feasibility of drip irrigation system in grape cultivation
Abstract:
This study was undertaken to assess the financial feasibility of drip irrigation system in grape cultivation in Bijapur district of Karnataka. Primary data were collected from 120 grape cultivators in Bijapur and Indi taluks. The Total investment on drip irrigation system amounted to ` 61,050/ha and annual working cost was worked at ` 17,141/ha. Total cost in production of grape under drip and furrow irrigation was ` 5,01,297/ha and ` 5,48,708/ha, respectively. Additional returns in drip irrigation over furrow irrigation method were worked out at ` 56,829/ha. At 11.75 per cent discount rate, the NPV of investment on drip irrigation system was ` 1,15,433.10, BC ratio, IRR and Pay Back Period were 1.89, 46.87 per cent and 1.07 years, respectively. Other than these there was savings in labour and material costs. These indicators showed the financial feasibility of the drip irrigation system. Delay in sanctioning of loans and approval of subsidy; improper disbursement of subsidy, lack of technical support were some problems faced by farmers in adoption of drip irrigation system. Since there are high dividends from micro irrigation, there is a need for larger quantum of subsidy especially for the small and marginal farmers. Procedures for approval and subsidy disbursement need to be simplified in terms of number of documents, number of days required for approval etc with the help of modern information and communication technology tools.
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