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

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Based <strong>on</strong> the Nati<strong>on</strong>al Accounts Statistics (NAS), Dhawan (19983., 1998b,<br />

<strong>and</strong> 2000) makes a prognostic attempt to estimate the benefits <strong>and</strong> costs <str<strong>on</strong>g>of</str<strong>on</strong>g> canal<br />

irrigati<strong>on</strong> in India. It is found that the producti<strong>on</strong> benefits (aggregate irrigated<br />

yield) from canal irrigati<strong>on</strong> (expresses as value <str<strong>on</strong>g>of</str<strong>on</strong>g> yield per hectare) increased<br />

from Rs. 4038 in 1980-81 to Rs. 12617 in 1992-93 <strong>and</strong> the yield gain increased<br />

from Rs. 2087 to Rs. 7132. On the other, the total annual cost <str<strong>on</strong>g>of</str<strong>on</strong>g> provisi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

canal irrigati<strong>on</strong> has increased from Rs. 909 per ha. to Rs. 4986 during the same<br />

period <strong>and</strong> the unit cost <str<strong>on</strong>g>of</str<strong>on</strong>g> canal irrigati<strong>on</strong> has increased from Rs. 488 to Rs.<br />

2277 at current prices. However. he cauti<strong>on</strong>s that the reported benefits have not<br />

been rec<strong>on</strong>ciled in terms <str<strong>on</strong>g>of</str<strong>on</strong>g> irrigati<strong>on</strong> charges paid by the beneficiary <strong>farm</strong>ers <strong>and</strong><br />

incremental associated costs <str<strong>on</strong>g>of</str<strong>on</strong>g> irrigati<strong>on</strong> <strong>development</strong> incurred by the individual<br />

<strong>farm</strong>ers <strong>for</strong> the usc <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>farm</strong> inputs.<br />

Dhawan (1998b) also points to an important lapse in the c<strong>on</strong>venti<strong>on</strong>al cost<br />

<str<strong>on</strong>g>ec<strong>on</strong>omics</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> canal irrigati<strong>on</strong>. which is the n<strong>on</strong>-c<strong>on</strong>siderati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> 'incidental<br />

benefits,1 caused by the canals. An important incidental benefit is the canal<br />

(seepage) induced artificial groundwater recharging <strong>and</strong> this not <strong>on</strong>ly improves<br />

returns to investments in well irrigati<strong>on</strong>. but also exp<strong>and</strong>s the very base <strong>for</strong><br />

groundwater based agriculture (Dhawan. 1986. 1989). Other incidental benefits<br />

which need serious c<strong>on</strong>siderati<strong>on</strong> are reducti<strong>on</strong> in instability in the <strong>farm</strong><br />

ec<strong>on</strong>omy. multiple uses <str<strong>on</strong>g>of</str<strong>on</strong>g> irrigati<strong>on</strong> water. like civic needs <str<strong>on</strong>g>of</str<strong>on</strong>g> urban <strong>and</strong> rural<br />

populati<strong>on</strong>s. especially. drinking water needs. employment benefits. etc.<br />

2 Incidental henefits are akin to pril1lar~ henefit> <strong>and</strong> 'Ieft out <str<strong>on</strong>g>of</str<strong>on</strong>g> the reck<strong>on</strong>ing. either<br />

because <str<strong>on</strong>g>of</str<strong>on</strong>g> the difficulties in measuring them in m<strong>on</strong>etary terms. or because <str<strong>on</strong>g>of</str<strong>on</strong>g> their<br />

Intangible nature (food security. sense <str<strong>on</strong>g>of</str<strong>on</strong>g> self reliance in food grains, poverty<br />

alleviati<strong>on</strong>. etc.) (Dhawan. 1998h 10).<br />

39

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