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irrigation commands: (b) perceptible change in the cropping pattern 10 favour <strong>of</strong> rainfed and perennial cash crops; (c) rise in costs <strong>of</strong> land. labour and material involved in the construction <strong>of</strong> canal systems: (d) disproportionate rise in the establishment (revenue) expenditure in irrigation schemes; (e) change in design! alignment <strong>of</strong> canal systems; and (f) land acquisition for aligning canals and the earthwork involved. The political rationale behind the development <strong>of</strong> irrigation systems in the post-independence era has been to initiate multi-purpose river valley projects, which invariably resulted in thin spreading <strong>of</strong> scarce financial resources, opening up the floodgates <strong>of</strong> corruption. resulting in cost and time over-runs in irrigation projects in the state. Other reasons include unscrupulous payments to the contractors. huge amount involved in arbitration awards. etc. Decline in paddy area It is important to note that the issue <strong>of</strong> cost escalation and time lag has not been explained in terms <strong>of</strong> the shift in cropping pattern in favour <strong>of</strong> dry crops, which in effect. does not generate any demand for water for irrigation. Thus. the physical demand for water is not translated into effective demand. This caused considerable delays in the completion <strong>of</strong> irrigation projects. compounded by cost escalation <strong>of</strong> alarming proportions. lJsing this analogy, it may be strongly argued that most <strong>of</strong> the irrigation projects in tht: state. especially, the ongoing schemes are confronting such --------------------------------- For a detailed review Oil cost csc~d"ti()11 and time-lag, see Singh (1997: 118-130). 177
a CriSIS. As the works involved In the irrigation projects are irreversible. the unproductive lag gets extended further without any benefits accruing to the beneficiaries downstream. The decline <strong>of</strong> paddy area has also similar effect on escalation <strong>of</strong> costs. A serious outcome <strong>of</strong> the decline in area under paddy as highlighted in the audit review reports <strong>of</strong> the Comptroller and Audit General <strong>of</strong> India (CAGI) is the decline in the anticipated benefits from irrigation projects leading to erosion in the envisaged benefit cost ratios. This problem has been reported in respect <strong>of</strong> some <strong>of</strong> the ongoing schemes as shown below: (i) In the Kuttiadi irrigation project, the BeR has been reworked at 0.67 at 1992 agricultural prices. Though the project was taken up in 1962. substantial investment was made only by 1973. According to the project report. the cost per ha. <strong>of</strong> potential to be created was Rs. 3408, but the actual cost based on the investment made till March 1993 was Rs. 1.06 lakhs per ha. This is much higher than the national average <strong>of</strong> Rs. 27000 during the Seventh Plan period. The expenditure was almost 4 times more than the original estimates (CAGl, 1993). No steps were taken to diversify cropping pattern on the lines suggested by the Planning Commission in March 1983. (ii) In the Muvattupuzha Valley Irrigation Project (MVIP), it was originally emisagcd to raise three crops <strong>of</strong> paddy (as per the project report, 1975) in the entire ayacut <strong>of</strong> 17400 ha. with a view to raise an additional food production <strong>of</strong> 1.47 tonnes <strong>of</strong> paddy. But, due to the decline <strong>of</strong> the ayacut area under 178
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, ECONOMICS OF ON-FARM DEVELOPMENT:
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DEC LARA TION I declare that the th
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I thank Dr. KM Varadan, CWRDM. Kozh
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CONTENTS Chapter 1 1.1 1.2 1.3 1.4
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4.9 Occupational Status of<
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5.3 5.4 5.6 5.7 Financial Investmen
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Figures 6.1 6.2 Chart 6.1 Appendix
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Abbreviations used ASMO BFA's CADA
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An attempt has been made in this ch
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among the people and the process <s
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the Indian state had followed a pol
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water harvesting 7 by arguing that
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(World Register of
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Eighth Plan has been estimated by t
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One of the most im
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integrated development of</
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inadequate attention given to OFD w
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performance of irr
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created. According to the Central W
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7 lagoons, 901 tanks and over 30 la
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competent and responsible agency wi
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physiographic conditions of
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(14 completed and 15 ongoing) proje
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interventions to improve the operat
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a summary of findi
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economic analysis of</stron
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een brought out by many scholars in
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While the economic benefits <strong
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sources, wasteful utilisation <stro
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such as rise in pnces, inadequate i
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the completion of
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of rainfed croppin
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areas being 8 per cent (GO!, 1998).
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investment In irrigation developmen
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Subsequently, an Expert Committee w
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highlighted the problems related to
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2.3.1 Studies on tbe impact <strong
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command area has reduced the labour
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Nanjundappa (1988), while examining
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y the CADA have led to low producti
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agents as against 90 per cent or mo
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among their members; c) insisting t
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Ansari (1989) shows that there have
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unit of land culti
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subgroup increased from 40 per cent
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1) The maIn activity being undertak
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which are unique in several ways, t
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across the states in different agro
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and social setting In which a proje
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The indepth study to examine the fa
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\,;nar~ .NO. ~.~: .t"rocesses ana s
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understand the problems related to
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of the crop produc
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greater differences between the the
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Chart ~o J.2 'Vater Institutions an
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specific promotional programmes und
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Chart No. 3.3 Explaining failure <s
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3.3.2 Crop specific promotional ins
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non-viable paddy. Even the farmers
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'- K01HIKOO --', , .-- :,' , \. ,.'
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strictly adhered to the directions
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4.1.2 Financial aspects The total e
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4.2 The Kallada Irrigation and Tree
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Map 4.4: Kallada Ayacut , IItIJrt ~
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in lands having slopes less than 3
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Table 4.1. Envisa~ed Croppin~ Patte
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in terms of underg
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meters. The end of
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and Kayamkulam branch in Phase II.
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lands. The average holding size is
Page 141 and 142: The characteristics of</str
Page 143 and 144: size group is the highest in the mi
Page 145 and 146: Table 4.10: Occupational status <st
Page 147 and 148: Appendix 4.1: Physical and technica
Page 149 and 150: Chapter 5 Dynamics of</stro
Page 151 and 152: plan. annual plans (1966-69) and th
Page 153 and 154: gt:ographical concentration <strong
Page 155 and 156: Concerted efforts were also made fo
Page 157 and 158: T a bl e 5 3 Ph . I d Ii . I - - vS
Page 159 and 160: expenditure and p~ysical achievemen
Page 161 and 162: the state cannot be treated as a pu
Page 163 and 164: in gross irrigated area. While cana
Page 165 and 166: development of lan
Page 167 and 168: The annual compound growth rates in
Page 169 and 170: 5.2.1 Dynamics of
Page 171 and 172: area and yield of
Page 173 and 174: A micro level study by Narayanan (1
Page 175 and 176: ubber cultivation. in Kallada. the
Page 177 and 178: The debate on conversion of
Page 179 and 180: (Table 5.10). The table indicates t
Page 181 and 182: eqUires substantial investment for
Page 183 and 184: Source: Govt. of K
Page 185 and 186: the period 1985-86 to 1997-98. For
Page 187 and 188: The overall scenario suggests that
Page 189 and 190: project, they tend to undertake yie
Page 191: the establishment expenditure (stri
Page 195 and 196: (ii) In the Karapuzha project. the
Page 197 and 198: 5.15). The table indicates that the
Page 199 and 200: place. There were three revisions J
Page 201 and 202: Revenue vis Capital expenditure The
Page 203 and 204: Let us now examIne the intensity <s
Page 205 and 206: Cost escalation due to arbitration
Page 207 and 208: Another source of
Page 209 and 210: process would be very high. This al
Page 211 and 212: construction for more than 20 years
Page 213 and 214: are mainly concentrated in Thrissur
Page 215 and 216: ApMndlJ ~.1: ProjKI-wlw Ihne tn Tot
Page 217 and 218: ArlPcndil: ~.J: "'inanchtllnnstmrnl
Page 219 and 220: Chapter 6 Economics of</str
Page 221 and 222: conditions of the
Page 223 and 224: Chart: 6.1 Organisational Chart sho
Page 225 and 226: and Palakkad together occupy 10 <st
Page 227 and 228: Table 6.2. Physical and financial t
Page 229 and 230: the total allocation has been for t
Page 231 and 232: per cent achievement in physical te
Page 233 and 234: Besides. it has been reported that
Page 235 and 236: I , MalamDuzha 387 7.39 1908.53 13.
Page 237 and 238: ~~- ~- --~ In all others. the BC ra
Page 239 and 240: possible in these lands during Khar
Page 241 and 242: Hence. it may be argued that since
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It is mainly due to scarcity <stron
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project. where it is very high at R
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proper coordination between variOUS
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deficiencies that help drawing less
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conjunctive use of
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3) Again. due to the high density <
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Table 6.13: Details of</str
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doubts about the senousness <strong
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practice IS more conspIcuous In the
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2.05 HP as compared to 1.68 HP in t
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large holders have spent two to thr
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Farming is considered mostly as a s
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The profitability
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noticed in the case of</str
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The Cobb-Douglas (CD) Function has
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· 13 Bank assistance programme and
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etween I to 2 ha. are to arrange fo
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Table 6.22: Status of</stro
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Though almost all the farmers repor
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3854 in the middle reaches. The pro
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The net income from vegetables and
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Appendix 6.1: Project-Wise Physical
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Chapter 7 On-Farm Development: Dete
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It can be seen from the survey data
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een made to examme as to how many f
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a farmer to use water from the dist
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The farmers were asked to reflect u
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evamping needed to reorient the MCS
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supplies. What is more interesting
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the knowledge of i
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All of the five ex
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It is evident from the table that t
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implications on the dynamics <stron
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competitive monocropl2 as no other
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of conversion thro
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involving farmers as active members
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The viability of p
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factors l8 . As a result. the agric
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The rise in price of</stron
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may be observed that the canal seep
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process of paddy l
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Table 7.19: Productivity and gross
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The technical constraints In the de
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2) Lack of irrigat
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manure or fertilisers are also do n
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according to the conventional basin
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Registration Act, 1860 in the erstw
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The pattern of act
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eported by CADA of
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Appendix 7.2: Paddy land conversion
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d,l!llS in the post-independence pc
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all(lcatioll ill the absence <stron
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irrigation commands. Th;; stud) was
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comparative COSI .:conomlcs <strong
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time lag involved in completion uf
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the state has increased by about 46
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cultivation of com
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through the effective implementatiC
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een the highest in Kallada project
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It was noticed that among the vario
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The institutional paradigm evolved
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of India to be rel
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economically viable. This underscor
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The intensity and spread of
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of allocation and
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shows that filed realities have not
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as water management related factors
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labour intensive farming operations
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Given the dynamics, problems and co
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ground realities associated with cr
Page 383 and 384:
Dhawan, B.D. (1989): Sludies in Irr
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Kothari, Rajni, (1989): Politics an
Page 387 and 388:
Vaidyanathan, A (1999): Water Resou
Page 389 and 390:
Ghosh, Prabir De, Budhadeb (1998):
Page 391 and 392:
Nair, Sukumaran, M.K. (1999): 'Rura
Page 393 and 394:
Varadan, K,~ (1999): 'Estimation <s
Page 395 and 396:
GOK (1967b): Evaluation of<
Page 397 and 398:
Ferrer. A.M., .L.e. Lucero (1988):
Page 399 and 400:
Suresh, K.A. (2000): 'Group Managem
Page 401 and 402:
Tomlinson, B.R. (1992): 'The Indian
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