MSc

The present study entitled “Economic value of irrigation water: A case study of
Neyyar Irrigation Project, Thiruvananthapuram was conducted during 2020-21, with
specific objectives of estimating the economic value of irrigation water, assessing the
impact of irrigation on crop yield of selected crops under the ayacut area of Neyyar
Irrigation Project and identifying the operational problems in irrigation management.
The study was conducted in the command area of Right Bank Canal (RBC)
Neyyar Irrigation Project (NIP) in Thiruvananthapuram district with the help of both
primary and secondary data. Primary data was collected from farmers using a pre-tested
interview schedule. Secondary data related to the study was collected from
Krishibhavan, Gramapanchayat and other governmental and non-governmental
agencies. Respondent farmers were selected using stratified random sampling and
stratification was done based on the length of canal (Head reach, middle reach and tail
reach). Total sample size was one hundred twenty, consisting of sixty beneficiary
respondent farmers and sixty non beneficiary respondent farmers.
Contingent Valuation Method (CVM) was employed to elicit the Willingness to
Pay (WTP) of beneficiary farmers for the assured and timely supply of irrigation water
and the mean WTP per year was found to be Rs 721.80 per year which was only 0.3 per
cent of their average annual farm income. The WTP of the farmers was found to be
ranged between Rs 600 to 1200 per year. Among the beneficiaries the WTP of tail reach
farmers was found to be the higher than that of middle and head reach farmers due to
the fact that tail reach farmers, often had to face water scarcity and were willing to pay
more than head and middle reach farmers if adequate supply of water is ensured. The
economic value of irrigation water was calculated by multiplying the total number of
beneficiary households and their estimated WTP and was found to be Rs 1.5 crore per
year which covered only 47 per cent of annual operation and maintenance cost of the
dam in the year 2020-21. The low economic value realised was due to the poor WTP of
farmers.
The costs of cultivation of banana and cowpea which were the major crops in
the study area were calculated for both beneficiary and non-beneficiary farmers. The
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cost of cultivation of banana was found to be slightly higher for non- beneficiaries than
beneficiaries while cost of cultivation of cowpea was higher for beneficiary farmers
when compared to non-beneficiary farmers. For both crops, per cent share of hired
labour and organic manure had highest contribution in total cost A1.
Cobb-Douglas production function was fitted for banana and cow pea
production among beneficiaries and non-beneficiaries to examine the resource use
efficiency. Yield of both banana and cow pea were higher for beneficiaries than nonbeneficiaries. Only yield of banana had significant difference between beneficiaries and
non-beneficiaries. Irrigation was found to be significant in both banana and cow pea
production by beneficiary farmers. Marginal productivity analysis for examining the
allocative efficiency showed that, all the resources of production of banana were found
to be underutilized for both beneficiaries and non-beneficiaries. For cow pea, organic
manure was over-utilized by beneficiary farmers while all other resources where
underutilized by both beneficiaries and non-beneficiaries.
Lack of timely release of water was identified as the major problem faced by
farmers in the command area irrespective of strata. siltation in the canals and water
scarcity during dry months were cited as other major constraints especially by middle
and tail reach farmers. To tackle these issues effective supervision and coordination in
facilitating smooth supply of water may be enhanced from the institutional side. Proper
as well as flexible schedule for release of water have to be maintained by dam
authorities and it should be disseminated among the beneficiary farmers. For this
efficient and systematic communication between dam officials and farmers may also be
ensured. Formation of Water Users' Association may be encouraged in order to improve
farmer’s participation. Timely subsidies for purchasing motor pumps would also be
helpful to those farmers who have to bear additional fuel expenses for lifting water from
the canal.