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economics of on-farm development - Institute for Social and ...

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The expenditure <strong>on</strong> OFD has been very high in cases where the extent <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

groundwater replenishment has been more as well as the higher levels <str<strong>on</strong>g>of</str<strong>on</strong>g> pump<br />

set capacity. Howcyer. the small <strong>and</strong> marginal <strong>farm</strong>ers need special attenti<strong>on</strong> in<br />

this respect. as many <str<strong>on</strong>g>of</str<strong>on</strong>g> them cannot af<strong>for</strong>d to have an independent pumpset <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

high capacity <strong>and</strong> even if some can af<strong>for</strong>d. it would not be ec<strong>on</strong>omically viable<br />

- .<br />

There<strong>for</strong>e. there is a need <strong>for</strong> developing an instituti<strong>on</strong>al mechanism to promote<br />

water markets in the comm<strong>and</strong> area.<br />

6.2.1.2 Impact <str<strong>on</strong>g>of</str<strong>on</strong>g> OFD <strong>on</strong> income from different crops in the Peechi project<br />

Following a detailed discussi<strong>on</strong> <strong>on</strong> the positive benefits <str<strong>on</strong>g>of</str<strong>on</strong>g> groundwater recharge<br />

caused by the seepage in the Peechi canal system <strong>and</strong> its impact <strong>on</strong> <strong>farm</strong> level<br />

adopti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> OFD <strong>and</strong> related issues. an attempt has been made. in what follows.<br />

to examine the crop-wise costs <strong>and</strong> returns <strong>on</strong> investment. However. be<strong>for</strong>e<br />

examining the cost <strong>and</strong> returns <str<strong>on</strong>g>of</str<strong>on</strong>g> different crops across the canal reaches. a brief<br />

note <strong>on</strong> the cost c<strong>on</strong>cept used in the analysis is in order.<br />

The cost c<strong>on</strong>cept used in the study is "Cost A' as used in the studies <strong>on</strong><br />

Farm Management Surveys9. especially by Kahl<strong>on</strong> <strong>and</strong> Singh (\980). This is<br />

because <str<strong>on</strong>g>of</str<strong>on</strong>g> the problems involved in apporti<strong>on</strong>ing the cost <str<strong>on</strong>g>of</str<strong>on</strong>g> l<strong>and</strong> or the interest<br />

<strong>on</strong> l<strong>and</strong>. as a fixed asset in the <strong>farm</strong>ing cost calculati<strong>on</strong>s in respect <str<strong>on</strong>g>of</str<strong>on</strong>g> Kerala.<br />

9 The Farm Management Studies (FMS) have used three important cost c<strong>on</strong>cepts. viz.,<br />

Cost A. Cost B <strong>and</strong> Cost C. in arriving at a re~listic estimate <str<strong>on</strong>g>of</str<strong>on</strong>g> thl! cost <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

individual crops. Accordingly, 'Cost A' includes expenditure <strong>on</strong> labour, draught power,<br />

<strong>farm</strong> machinery, seeds. fertiliser <strong>and</strong> manure, plant protecti<strong>on</strong> chemicals, irrigati<strong>on</strong> <strong>and</strong><br />

miscellaneous expenditure, including cost <str<strong>on</strong>g>of</str<strong>on</strong>g> transportati<strong>on</strong> <strong>and</strong> marketing. 'Cost R'<br />

comprise 'Cost A' plus interest <strong>on</strong> fixed capital, including l<strong>and</strong> <strong>and</strong> 'Cost C' includes<br />

'Cost B' plus imput~d value <str<strong>on</strong>g>of</str<strong>on</strong>g> family labour.<br />

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