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    Impact of command area development authority (CADA): an economic analysis of Neyyar irrigation project
    (Department of Agricultural Economics, College of Horticulture, Vellanikkara, 2004) Aswathy Vijayan; KAU; Satheesbabu, K
    Water is the most precious natural resource providing life-supporting system for plants, animals as well as human beings. The twentieth century witnessed a tremendous growth in the use of water resulting in a mismatch between per capita water availability and its use. It is against this background that the study entitled “Impact of Command Area Development Authority: An Economic Analysis of Neyyar Irrigation Project” was undertaken with the specific objectives of evaluating the socio-economic impact of Neyyar Irrigation Project in the command area and to identify the operational problems. The study was carried out during the year 2003-04. The study was based on primary as well as secondary data. A stratified random sampling method was employed to collect information from 60 beneficiary farmers from the head, middle and tail reaches, and 60 non-beneficiary farmers. The study revealed that while the beneficiary farmers devoted more cropped area under more water demanding crops, the non-beneficiaries gave less thrust on water demanding crops. The cropping intensity (115.68%) and gross area irrigated (81.35%) was more for beneficiaries when compared to non-beneficiaries. The crop productivity and gross margin of major crop enterprises like banana, coconut, and vegetables were higher for the beneficiary farmers than the non-beneficiaries. The increase in yield was 11.22 per cent for banana (Nendran), and 4.84 per cent for coconut. In vegetables also, the crop yield was higher for the beneficiaries. In the case of rain fed crops like tapioca, the crop yield was more for non-beneficiary farmers. The actual utilization index showed that the cumulative area actually brought under irrigation has increased from 53 per cent in 1985 to 75 percent in 2003. The Financial Self Sufficiency ratio showed that the revenue from water cess was recovering only 8 per cent of the operation and maintenance cost of the project. The financial analysis was carried out and which indicated the project was financially attractive with a benefit-cost ratio was estimated to 1.48, the NPV was Rs 43.12 lakhs, and the financial rate of return of 16 per cent. The economic analysis of the project by correcting the distortions on account of subsidies revealed that the project was economically attractive to the society with a benefit cost ratio of 5.66, a net present value of Rs 1018.31 lakh. The economic rate of returns on the irrigation investment was 35.47 per cent. The operational problems in on- farm irrigation were water scarcity in summer, improper maintenance of canals, lack of timely desiltation, unscientific channel construction and wastage of water and poor canal lining. There was no supply of water according to the crop requirement, and the system of rotational water supply (Warabandhi) was not practised.