ECONOMIC ANALYSIS OF FARM PONDS IN TUNGABHADRA PROJECT COMMAND AREA OF KARANATAKA, INDIA

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1 International Journal of Agricultural Science and Research (IJASR) ISSN(P): ; ISSN(E): Vol. 5, Issue 3, Jun 2015, TJPRC Pvt. Ltd. ECONOMIC ANALYSIS OF FARM PONDS IN TUNGABHADRA PROJECT COMMAND AREA OF KARANATAKA, INDIA VENU B. N 1, RAVI SIMHA L 2 & VENKATARAMANA REDDY V. 3 1,2 Department of Agricultural Economics, College of Agriculture, UAS, Bangalore, Karnataka, India 3 ICRISAT, Patancheru, Hyderabad, Telangana, India ABSTRACT Farm ponds add value to farming activities through the means of water supply to domestic and as well as for livestock. It serves irrigation facilities to growing crops and supporting for raising of fishes. Even though TBP (Tungabhadra Project) command area is a canal fed, release of canal water varies with the onset on monsoon rains and water level in TB dam. Hence, it is very problematic for paddy growing farmers for raising paddy nursery before release of canal water and for drinking water for animals and human beings after the closer of canal water during months of April-June. In this situation there is a need to bring out pros and cons of farm ponds. Cost, returns, and economic viability for small, medium and large farmers with and without farm ponds are presented for Tungabhadra region of Karnataka. IRR are 14, 18 and 19 respectively. Average total cost per pond is between Rs to Rs Total net income is higher in case of large pond farmers with Rs lakh compared to 1.75 lakh farmers without farm pond. Results of the study revealed that farm ponds generated an additional income and employment through different utilities. Therefore, farmers may be encouraged to construct farm ponds based their requirement and availability of resources. These results have implications for regional comparative advantage of crop production as well as incentive for adoption of new technologies in convention ponds. KEYWORDS: Farm Pond, Utilities of Farm Pond, Investment, Economic Viability INTRODUCTION Agriculture being major occupation in India provides employment for 58 per cent of the country s population. In India about 97 mha irrigational potential of has been created, out of which only 82 mha has been utilized, the gap of 18 per cent exists between irrigation potential created and utilized. In case of Karnataka, a gap of 12 per cent is estimated between irrigation potential created (4 mha) and utilized (3.6 mha). This gap might be due to lack of proper planning and management of storage structures like dams, leakage through gates, conveyance system and at farmer s level. This gap can be encountered by proper planning and economic management of scarce resources at all levels, may be at management level and at farmers level by involving them in management. Management of Scarce Water Resources Water utilization can be well planned and utilized efficiently and economically by different technologies of irrigation (drip and sprinkler irrigation), proper management of gates and dams, lining of canals and harvesting water in structures like farm ponds, tanks, nala bunds and so on. Farm ponds are one of the key players in water harvesting, storing and utilizing stored water efficiently. editor@tjprc.org

2 194 Venu B. N, Ravi Simha L & Venkataramana Reddy V. Farm ponds are the water harvesting structures constructed to store water whenever there is an ample availability of water, thus, stored water is used further when there is shortage of water. These ponds are used for many purposes including: irrigation, flood control, collecting sediment, watering livestock, recreation, sources of domestic water, rural fire control, and fish production. Canal Water Use Efficiency in TBP Area Conveyance efficiency of TB high level command area is 81 % and TB low level canal is 72 %. Whereas, overall water use efficiency of TB high level canal is 47 % and low level canal is 32 % as per the report by working group on Major and Medium Irrigation and Command area development, submitted to Ministry of Water Resources, Govt. of India in the month of November, This is due to leakage of water from gates, canals and wastage of water at field level. Need for the Study Even though the TBP command area is canal fed, farm ponds play pivotal role in Karnataka. Canal water in TBP area is released in the month of July after monsoon rains and rise in the water level in Tungabhadra dam. Paddy being predominant crop in TBP command area, if farmers start raising paddy nursery after release of canal water, transplanting will be delayed to August-September. So, farmers use farm pond water stored during the previous year to raise paddy nursery in the month of June for kharif crop. By the time water is released into canals, paddy seedlings will be ready for transplanting. Hence, farmers construct farm ponds and store available canal water during July to March after meeting irrigation needs of the crop. Thus, stored water is also used for rabi/summer crop after canal water is closed in the month of March- April. In the mean time few farmers release fish fingerlings into farm pond in the month of August-September and will be harvested in the month of March-April when water level in the pond goes down. After canal water is closed, availability of water for drinking is problematic condition in the villages of TBP command area, farm ponds becomes one of the main source of drinking water for both human beings and animals. Some farmers grow horticulture crops on the embankments of the farm pond. Some people argue that storage of canal water by head and middle reach farmers makes it non-available at tail end farmers. There are other apprehensions such as seepage of water from farm pond, salinity, etc. Under such circumstances, it is necessary to examine these issues critically to through light on merits, demerits, strategy for farm pond water utilization in Tungabhadra Project area. In this regard, the attempt has been made in this study to study the pattern of usage of farm ponds, their impact on production and farmer s income, and their effects on soil and water availability at tail ends. METHODOLOGY The study was conducted in Tungabhadra left bank canal command area. A multistage purposive sampling technique was used for selection of sample farmers. The sampling size comprises of 53 farmers with farm pond were selected purposively based on the availability of farm ponds with farm families. For comparison, 30 farmers without farm ponds neighboring to farmers with farm ponds were choosen. Analytical tools like Cost concepts, amortization, compounding, BC ratio, payback period, IRR and Net Present value were employed in the study. Impact Factor (JCC): NAAS Rating: 3.53

3 Economic Analysis of Farm Ponds in Tungabhadra 195 Project Command Area of Karnataka, India RESULTS AND DISCUSSIONS Utilization Pattern of Farm Ponds The farm ponds in TBP area were being used for raising paddy nursery (79.25 %), followed by protective irrigation to paddy (77.36 %) and for drinking water for animals (56.60 %) and human beings (37.74 %). Similar pattern of utilization was observed in case of small and large sized farm ponds. An opinion survey revealed that the canal water generally released during July after onset of monsoon and raising water level in Tungabhadra dam as seen over the last two decades. Farmers have started construction of the farm ponds in their own fields to store the canal water before its closer and use it for paddy nursery raising. Later on, some of the innovative farmers started aquaculture in such farm ponds to make use of the water available in farm ponds. When canal closes around March/April every year, the availability of drinking water in majority of the villages all along the canal command area was a problematic situation. The farm pond became the source of drinking water for both human beings as well as animals especially during summer from April to June. The farmers having farm ponds were also found using the farm pond water for protective irrigation especially to paddy whenever there is a breach of the canal, early closer of the canal than the announced date, dry spells, etc. It is worth noting that many farmers have planted horticulture crops like mango, banana, coconut, sapota, drumstick, lime, karipathi, flower plants etc. on the embankments of the farm ponds which uses the pond water (Table 1). Thus, the farm pond water was used effectively for diversified activities. Sl. No. Table 1: Distribution of Ponds Based on their Use for Different Purposes Purpose 1 Raising of paddy nursery 2 Rearing of Inland fisheries Paddy Hybrid jowar Size of Pond Small Medium Large Aggregate (N=24) (N=17) (N=12) (N=53) No. % No. % No. % No. % (54.76) (21.43) (23.81) (0) (59.09) (22.73) (18.18) (0) (53.66) (21.95) (24.39) (0) (07.14) (71.43) (21.43) (0) (16.67) (50.00) (33.33) (0) Protective Cotton 3 irrigation to Horticult ure crops (Mango, Banana, (76.92) (07.69) (15.38) (0) Coconut, Sapota) 4 Drinking Water for Human beings (35.00) (50.00) (15.00) (0) Drinking Water for Animals (46.67) (36.67) (16.67) (0) Total Note: Figures in parenthesis are percentages Impact of Farm Ponds on Income and Employment As presented in Table 2, inland commercial fish rearing in farm ponds contributed per cent to the total net income of the farm families having farm ponds, followed by paddy (28.82 %) and horticulture crops (7.64 %). Whereas, in editor@tjprc.org

4 196 Venu B. N, Ravi Simha L & Venkataramana Reddy V. case of income of farm families having no farm pond, paddy contributed major share (71.43 %) followed by cotton (18.86 %) and hybrid jowar (9.71 %). However, total net income of farm families having farm pond (Rs.7.46 lakhs) was significantly higher by more than three times (326 %) as compared to income of farmers having no farm pond (Rs lakhs). More than 60 per cent of net income was contributed by non-crop activities such as rising paddy nursery, fishery and horticulture crops in farmers with farm ponds in TBP area. The increase in income among farmers having farm pond and using the pond water as protective irrigation in case of hybrid jowar (223 %), paddy (72 %), and cotton (48.48 %) was found to be significant over farmers having no farm ponds. The farm pond water might have acted as a safety measure in protecting the crop under unforeseen water stress situation like long dry spells, breach of the canal, early closer of canal, inadequate flow of canal water, etc. Anonymous (2009) reported an additional income of ` 30,000 by rearing fish in farm pond. Thus, it strengthens our earlier conclusion that farm ponds would provide an opportunity for diversification of crops and increase in income which would withstand risk of crop loss. Table 2: Net Income from Different Sources for Which Pond Water is Used (`Lakh/Pond/Year) The employment generated among farmers having farm ponds was considerably higher (29.07 %) than those having no farm pond in TBP area (Table 3). The change in employment generated with farm ponds over without farm ponds was higher from paddy nursery raising (733 %) followed by paddy cultivation (44.76 %) with protective irrigation and cotton (33.45 %). Generally, canal water was not available for paddy nursery raising in the month of June for farmers having no farm pond. However, the share of the different activities in total employment generated in with farm pond indicated that paddy (43.04 %) contributed highest share followed by jowar (31.25 %) and cotton (22.14 %). There was no employment generated from horticulture crops since no farmer was growing horticulture crops under no farm pond situation. Table 3: Employment Generation from Different Utilities of Pond (Man-Days/Pond) Note: Figures in parenthesis are percentages Impact Factor (JCC): NAAS Rating: 3.53

5 Economic Analysis of Farm Ponds in Tungabhadra 197 Project Command Area of Karnataka, India Returns to Investment and Viability of Farm Ponds On an average, the total cost of establishment of farm pond accounted to ` 11,08,7 per pond out of which the cost on lifting soil (` 6,96,147) by using tractors formed major share (63.39 %), followed by cost on digging with earth movers (26.84 %), pump set cost (6.49 %), fencing (2.74 %), etc. Similar pattern of cost on establishment of farm ponds was noticed in all sizes namely small, medium and large (Table 4). Soil thus available from digging was used to spread on the other parts of land of the farm which were affected by salinity. In view of the depth of the pond of about 15 to 20 feet below ground level, there was no free gravitational flow of water, hence, pump sets were installed to pump water from farm pond into the field. Fencing (ordinary barbed wire to power fence) around the farm pond was done to protect the pond from animals stepping on embankments of the farm pond. Figure 1: Establishment Cost of Farm Ponds of Different Sizes in TBP Area The estimates of investment feasibility analysis also indicated the viability of investment in different sizes of the farm ponds in TBP area. The higher net present value (Rs. 11, 12,506) with positive and more than one. Benefit cost ratio (1:1.35) of more than one, payback period of 6 years and internal rate of returns (18 %) of more than the bank interest rate. From the result, it could be comfortably concluded that the investment in the construction of farm ponds in TBP area which are used for different purposes was economically viable. Panda (2009) also reported economic viability of investment in construction of farm ponds. Hence, it is suggested to encourage the farmers to go for different sizes of farm ponds depending upon their landholding and requirement of water for different purposes and to earn sustainable income. Table 4: Estimates of Investment Feasibility in Different Sizes of Farm Ponds Sl. No. Particulars Size of pond Small Medium Large Aggregate 1 NPV (` lakh) BCR PBP (Years) IRR (%) Note: Assuming economic life span of farm ponds for 15 years and discount rate at 12 per cent editor@tjprc.org

6 198 Venu B. N, Ravi Simha L & Venkataramana Reddy V. CONCLUSIONS AND IMPLICATIONS Farm ponds in TBP command area are constructed for multi-purposes which provide additional income and sustainability to farmers in addition to reducing the crop loss due to unforeseen uncertainties like water shortages. Therefore, farmers may be encouraged to construct different sizes of farm ponds across different locations of command area as micro balancing reservoirs by providing financial assistance or incentives to the farmers. Similarly, there is a need to create awareness among farm pond holding farmers about judicious use of farm pond water for different purposes like raising paddy nursery, aquaculture, growing of horticulture crops on embankments so that higher sustainable income made available to the farm family. REFERENCES 1. Anonymous, (2011). Major and medium irrigation and command area development, Ministry of Water Resources, Government of India. 2. Hangaragi, S. S, (2011). Rain water harvesting in India for sustainable development: A conceptual study. Southern Economist journal, 50, Panda, S. N, (2009). Optimum sizing of on farm reservoir for various cropping system in rainfed uplands of eastern India. Proc. Nation. Workshop cum brain storming, Central Research Institute for Dry land Agriculture, Hyderabad, p Ravi simha, L. (2012). Economic analysis of investment on farm ponds in Tungabhadra project command area (unpublished MSc thesis). University of agricultural sciences Raichur, India. Impact Factor (JCC): NAAS Rating: 3.53