Returns to Investment on Rehabilitation of Tank Systems and its Impact on Farm Economy in Haveri District of Karnataka
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Date
2012
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Publisher
UAS, Dharwad
Abstract
The study focused to assess the economic viability of tank rehabilitation and
benefits accrued to farmers after rehabilitation in the selected five community based
tank systems in Haveri district of Karnataka. A sample of 25 farmers from each tank
command was selected comprising of 125 sample farmers. Tabular analysis was
employed to compute socio-economic features, cropping pattern, cropping intensity.
Budgeting technique was employed to analyze cost and returns and financial
feasibility measures were used to evaluate investment feasibility on tank
rehabilitation.
Out of the total investment of Rs.18.48 lakh in the tank rehabilitation highest
investment was made towards desiltation (35.80%) followed by excavation of
irrigation canals (21.15%), revetment (19.07%), etc. The extent of gross cropped area
was increased by 21.94 per cent after rehabilitation with substantial area increase
under kharif paddy, rabi sorghum and summer groundnut. The cropping intensity
increased after tank rehabilitation was from 177.78 to 209.03 per cent. With increased
availability of irrigation water after rehabilitation a substantial increase in the per acre
crop yields of all crops in the range between 23 to 36 per cent with higher net returns
which was about two and half times more than before rehabilitation thereby
incremental net return from the total command area from all tanks was Rs.23.54 lakh
per annum from 453.40 acres. The investment analysis has revealed a positive NPW,
B:C ratio greater than unity and IRR was more than the opportunity cost of capital
with a payback period of 4 to 5 years in all the five rehabilitated tanks indicated
economic viability of tank rehabilitation. About 64.80 per cent of respondents opined
that a moderate increase in ground water recharge after rehabilitation. The study
suggested the need for increased efforts of tank rehabilitation for greater impact on
the livelihood of farmers and inturn on farm economy.