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technicall~ designed to provide irrigation for commercial crops, the recalculation <strong>of</strong> Be ratios n13Y he unreal istic. Rise in factor costs The rise in factor costs, viz .. costs <strong>of</strong> land, labour and materials is identified as the major source l)f cost escalation in irrigation systems in Kerala. The costs <strong>of</strong> land acquisitil'n .md \\ age lahour arc much higher than the material costs. Land has become an important income generating asset rather than merely an input in the agricultural production process in Kerala, because land owners always look out for alternative uses other than agriculture to get higher income. For instance. the demand for land for construction <strong>of</strong> dwellings has been growing fast. Sl), the 0pp,'rtunit\ Cllst <strong>of</strong> land is \en high. Besides the demand for house, other Jct\\i!le, ,~.:h ;.I, CLlnstrllctlon \11 roads. clllu\:ltion <strong>of</strong> plantation crops. like rubber etc .. add t\' the lanJ lise dynamiCs in the state. For instance. in Muvattupuzha Valky IrrJ~atilln Prniec\. the lll"h tr~lI1saction cost <strong>of</strong> land intlated the cost <strong>of</strong> land acquisition~9 for canal construction. The land prices increased form Rs, 0.50 lakh per ha. as rrO\ided in the original estimate (1975) to Rs. 3 lakhs as per the revised estimates \)f 1'19:2 An .111 a 1\ SIS or the trl'llJs in fiSC 111 lanour costs and material COStS is ath:mpted oascJ on the schedule <strong>of</strong> r:J!es prescribed ny the Public Works Department ("WI)) I hese LJtes arc rele\ alit as thl' irrigation works are undertaken based on thes.: rall:, I he r~ltes ~tre l\lllll'arnl in Ilominal t.:rms for the last five decades (tabk , .• I he land aCl.jllISitttlll at Itlghel Lltcs has oecome Illevitable and the land prices arc sllostantiall, high due to Ihc lact IIL.I the alternate land usc is to grow rubber, which has been 181
5.15). The table indicates that the labour costs 30 have risen uniformly across the various groups. the highest rise bcing in the case <strong>of</strong> wages <strong>of</strong> female mazdoor (4834 %). followed by man mazdoor (3540 %) over the years. The wage rates <strong>of</strong> other categories <strong>of</strong> labourers have risen almost uniform. In nominal terms. the wages have increased almost 2 to 3 times across categories between periods. On the other, among the material costs. the maximum escalation has been in the prices <strong>of</strong> sand (11199 % 1. bricks (7900 %) and cement (22-t5 %) during the entire period. though the rise in prJ\:es <strong>of</strong> cement and bricks has been less than that <strong>of</strong> other items during 1990-1999 Table 515' -. Rise in labour and material costs in construction • 1959 -60 to 1999 Rise in costs (%) I Cost items 1959-60 1970 1980 1990 1999 1959-99 1990-99 Labour cost (Rs.) I Man mazdoor 2.5 4.5 13 27 91 3540 237 Woman mazdoor 1.5 3.75 10 22 74 4834 237 \Iason 4 7.5 19 40 134 3250 235 Carpenter 4 6.5 19 40 134 3250 :U5 ! Blacksmith 3.75 6.5 18 40 134 3473 235 Material cost (Rs.) MS Roads (qulIltal) 74.74 130 300 975 1600 2041 64 Cement (wnnes) 127.94 220 600 1300 3000 2245 131 Rubble (Cu.ml 7.42 6.5 17 50 160 2056 220 Bricks (OOOnos) 40 55 170.2 1200 3200 7900 167 Sand (Cum) 1.77 3.75 13.5 40 200 11199 ! 400 Metal (314120 mm) 19.43 21 60 130 400 1959 208 Source: GOK. Public Works Department, Schedule <strong>of</strong> rates, relevant years. The rIse in costs <strong>of</strong> labour and materials as discussed above is only a pointer to understand the magnitude <strong>of</strong> cost rise and various components leading to cost fetching vel! rClllllllcrative prices when compared III other crops. '" Major part ()f the rise in labour costs could be attributed to the cost <strong>of</strong> labour for collecting sand from river and conveying to river banks. unloading from boat and loading in the carrier again downloading at the site. head load conveyance, etc. Similar are the processes involved in the case with other materials also. 182
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, ECONOMICS OF ON-FARM DEVELOPMENT:
Page 3 and 4:
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
Page 55 and 56:
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
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The characteristics of</str
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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 and 192: the establishment expenditure (stri
Page 193 and 194: a CriSIS. As the works involved In
Page 195: (ii) In the Karapuzha project. 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
Page 243 and 244: It is mainly due to scarcity <stron
Page 245 and 246: 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
Page 347 and 348:
irrigation commands. Th;; stud) was
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comparative COSI .:conomlcs <strong
Page 351 and 352:
time lag involved in completion uf
Page 353 and 354:
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
Page 361 and 362:
It was noticed that among the vario
Page 363 and 364:
The institutional paradigm evolved
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of India to be rel
Page 367 and 368:
economically viable. This underscor
Page 369 and 370:
The intensity and spread of
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of allocation and
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shows that filed realities have not
Page 375 and 376:
as water management related factors
Page 377 and 378:
labour intensive farming operations
Page 379 and 380:
Given the dynamics, problems and co
Page 381 and 382:
ground realities associated with cr
Page 383 and 384:
Dhawan, B.D. (1989): Sludies in Irr
Page 385 and 386:
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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