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The analysis shows that the returns to scale in respect <strong>of</strong> coconut and banana cultivation is above one and it indicates increasing returns to scale. The lowest returns to scale has be.::n observed in the case <strong>of</strong> paddy (0.697). which indicates decreasing returns to scale per unit <strong>of</strong> investment. In the case <strong>of</strong> coconut. the returns to scale is almost one. indicating constant returns. The crop combination. ie .. coconut and banana give better returns to scale (1.033) in com pari son to coconut and arecanut (0.997). Given the higher returns arising from crop diversification in the groundwater irrigated conditions. it is important to note that under assured canal supplies. the scale <strong>of</strong> returns will be more than that reported, ensured through better land development and water management practices being adopted by the farmers Th.:: analysis also brings out a genuine need for crop-diYersification based on mixed cropping syskl11. wherein. the uncertainties involved in farming could be overcome to a considerable extent. 6.2.2 Impact <strong>of</strong> OFD in the Kallada Irrigation Project The Kallada Irrigation Project (KIP) is one <strong>of</strong> the two projects selected for the study. It is one <strong>of</strong> the oldest irrigation projects in the state, which was started in 1961. Due to various factors r~lllging from financial to technical design problems. the project stilI remains to be partially commissioned. The project was mainly designed for irrigating paddy. Subsequently. it was brought under the World 255
· 13 Bank assistance programme and therefore. there was substantial revision in the scope <strong>of</strong> the project in favour <strong>of</strong> garden crops. mainly coconut and other tret.' crops. including rubber to ensure financial viability <strong>of</strong> the project As a rt.'sult. the project is considered as the only project in the country specifically intended for growing tree crops and the project is. otherwise. known as the Kallada Irrigation and Tree Crops Development Project (KI & TCDP). Currently, less than 40 per cent <strong>of</strong> the ayacut is under wet crops. mainh paddy. Based on the field survey, it is noticed that only 17 per cent <strong>of</strong> the area is being cultivated under paddy. The remaining area notified under paddy is either left fallow due to lack <strong>of</strong> pr<strong>of</strong>itability <strong>of</strong> paddy or remains waterlogged due to the seepage caused by badly maintained canal systems. However, there are no realistic estimates to indicate the extent <strong>of</strong> paddy land left uncultivated due to various reasons. Paddy fields are also left uncultivated as the canopy <strong>of</strong> rubber plantations covers a major share <strong>of</strong> the paddy area. About 58 per cent <strong>of</strong> the area is under dry crops and 25 per cent area is put to non-agricultural uses, VIZ., permanent conversion for dwellings. roads and the like. As observed already, the project has been selected for an indepth study in view <strong>of</strong> its special significance in terms <strong>of</strong> crop diversification, quite distinct from the croppmg pattern designed originally, ie., paddy. The analysis <strong>of</strong> the impact <strong>of</strong> Kallada irrigation project is, limited in scope and content 111 view <strong>of</strong> the dismal performance <strong>of</strong> the irrigation sYstem and its incomplete status. U The external aid to the extent <strong>of</strong> US $ 80.3 million has been made available through the International Development Agency (IDA) as a loan and credit for the schemc. Thc full amount <strong>of</strong> the credit has been reimbursed as part l,f the Phase I <strong>of</strong> the project. 256
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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
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The characteristics of</str
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size group is the highest in the mi
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Table 4.10: Occupational status <st
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Appendix 4.1: Physical and technica
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Chapter 5 Dynamics of</stro
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plan. annual plans (1966-69) and th
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gt:ographical concentration <strong
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Concerted efforts were also made fo
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T a bl e 5 3 Ph . I d Ii . I - - vS
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expenditure and p~ysical achievemen
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the state cannot be treated as a pu
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in gross irrigated area. While cana
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development of lan
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The annual compound growth rates in
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5.2.1 Dynamics of
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area and yield of
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A micro level study by Narayanan (1
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ubber cultivation. in Kallada. the
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The debate on conversion of
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(Table 5.10). The table indicates t
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eqUires substantial investment for
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Source: Govt. of K
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the period 1985-86 to 1997-98. For
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The overall scenario suggests that
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project, they tend to undertake yie
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the establishment expenditure (stri
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a CriSIS. As the works involved In
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(ii) In the Karapuzha project. the
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5.15). The table indicates that the
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place. There were three revisions J
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Revenue vis Capital expenditure The
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Let us now examIne the intensity <s
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Cost escalation due to arbitration
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Another source of
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process would be very high. This al
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construction for more than 20 years
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are mainly concentrated in Thrissur
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ApMndlJ ~.1: ProjKI-wlw Ihne tn Tot
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ArlPcndil: ~.J: "'inanchtllnnstmrnl
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Chapter 6 Economics of</str
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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
Page 247 and 248: proper coordination between variOUS
Page 249 and 250: deficiencies that help drawing less
Page 251 and 252: conjunctive use of
Page 253 and 254: 3) Again. due to the high density <
Page 255 and 256: Table 6.13: Details of</str
Page 257 and 258: doubts about the senousness <strong
Page 259 and 260: practice IS more conspIcuous In the
Page 261 and 262: 2.05 HP as compared to 1.68 HP in t
Page 263 and 264: large holders have spent two to thr
Page 265 and 266: Farming is considered mostly as a s
Page 267 and 268: The profitability
Page 269 and 270: noticed in the case of</str
Page 271: The Cobb-Douglas (CD) Function has
Page 275 and 276: etween I to 2 ha. are to arrange fo
Page 277 and 278: Table 6.22: Status of</stro
Page 279 and 280: Though almost all the farmers repor
Page 281 and 282: 3854 in the middle reaches. The pro
Page 283 and 284: The net income from vegetables and
Page 285 and 286: Appendix 6.1: Project-Wise Physical
Page 287 and 288: Chapter 7 On-Farm Development: Dete
Page 289 and 290: It can be seen from the survey data
Page 291 and 292: een made to examme as to how many f
Page 293 and 294: a farmer to use water from the dist
Page 295 and 296: The farmers were asked to reflect u
Page 297 and 298: evamping needed to reorient the MCS
Page 299 and 300: supplies. What is more interesting
Page 301 and 302: the knowledge of i
Page 303 and 304: All of the five ex
Page 305 and 306: It is evident from the table that t
Page 307 and 308: implications on the dynamics <stron
Page 309 and 310: competitive monocropl2 as no other
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Page 313 and 314: involving farmers as active members
Page 315 and 316: The viability of p
Page 317 and 318: factors l8 . As a result. the agric
Page 319 and 320: The rise in price of</stron
Page 321 and 322: 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
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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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