B.A. (Hons), M.A (Econ). Ph.D., Hon. D.Sc Europe).

distinguished Indian Economist

COST-BENEFIT ANALYSIS OF IRRIGATION AND DROUGHT PROOFING (1989)

  • Overview
  • Index
  • Review

'Drought' is not a recent phenomenon; but is one recognised during the Planning era for an urgent remedial measure. Land and water resources development should be planned on a comprehensive basis and with a view to such an ultimately integrated operation component segments as will ensure the realisation of the optimum degree of physical and economic efficiency.

In pursuance of the above, it is felt that utilisation of full water resources for the well-being of the people and land management are the most important factors in tackling the drought intensity. Several studies have been made in India on the problems of drought. This study has focussed attention on the land and water management which is the ultimate and permanent measure to tackle it. The book presents the Cost-Benefit Analysis of a few irrigation works taken up under the Drought Prone Areas Programme and a succinct summary of several studies done or guided by the author. Although several studies are done so far which are utilised in brief in this study, the centre of attraction is a full-fledged case study of a World Bank-assisted drought district and the summation of the Cost-Benefit Analysis of several studies. The study will be useful to all those concerned with economic development in general and drought-prone areas programme in particular, both by administration and academics.

PREFACE                                                                           v
CHAPTER 1 : INTRODUCTION                                            1
CHAPTER 2 : CHARACTERISTICS OF THE
PROJECT AREA                                                                  7 
CHAPTER 3 : THE PROJECT                                             14
CHAPTER 4 : MINOR IRRIGATION: A COSTBENEFIT
ANALYSIS                                                                       37
CHAPTER 5 : IMPACT OF DROUGHT PROOFING
PROGRAMMES—AN EVALUATION                                  118
CHAPTER 6 : MONITORING SYSTEMS                            170
INDEX                                                                           173

Of the several Drought-Prone Area Programme (DPAP) under implementation, the author has taken up the DPAP in Bijapur, Karnataka for a detailed study. The objective of the study was to make general assessment of the performance of the programme, assess economic impact on the beneficiaries, identify inadequacies in the planning, implementation and management process of the programme and suggest corrective measures.

The book incorporates into it six chapters namely introduction characteristics of the project area, impact of drought proofing programmes— an evaluation and monitoring system. While the chapter on introduction deals with some idea on drought and the objectives of and the methodology for the study, the characteristics of the project area covers general information on climate and rainfall, land-use pattern, irrigation, area under principal crops, livestock resources.

The project area has not been properly described in view of the rainfall pattern and land-use pattern which render the district a drought prone area. In fact, the data on rainfall, land-use pattern and cropping pattern are grossly inadequate and whatever have been tabulated have not been interpreted scientifically which may enable the reader appreciate the peculiarties of drought prone area that prevailed in Bijapur. The third chapter deals with the project which indicated an outlay of Rs. 1169.11 lakh of which Rs. 341.89 lakh institutional credit was to be mobilised and the rest being the government expenditure. On page 15, physical targets and achievements are mentioned but the period to which it refers is not mentioned. Similarly, against the physical achievements no mention has been made about the financial expenditure alongwith institutional credit.

The fourth chapter is important and deals with the minor irrigation— A cost-benefit analysis. Out of nine minor irrigation projects four were selected for evaluation. The first part has very well dealt with the costs of several important crops and income thereof. However, yields of crops which are significant in DPAP have not been indicated as a result the willingness of farmers to grow specific crops cannot be known. The second part deals of diversification in the cropping pattern, increased employment, income and consumption and asset formation.

The third part deals with problems and difficulties. The time taken in the completion of the project has been very much varying from 14 to 56 months. Various reasons are given which, however, cannot be accepted or India can afford.

Chapter five presents the impact of drought proofing programmes covering soil conservation and dryland farming, animal husbandry programmes, afforestation and pasture development, sericulture,horticulture fisheries , The presentation, horticulture, fisheries. The presentation has been divided into four broad groups namely components of the programme, benefits to sample beneficiaries, difficulties experience and recommendations. However, some recommendations are not based on scientific lines. For example (P-141), it is mentioned, 'the system of purchase of animals outside the district will have to continue to ensure a supply of fresh animals, enhancement of livestock and prevention of exchange." Do we understand that other districts have surplus and they do not impose such restrictions?

In fact, raising milch animal in DPAP needs to be regulated scientifically. The problem of credit flow has been non-availability of milch animals of good quality and at reasonable price. It calls for a project approach and nothaphazard lending enforced by DPAP authorities The book is indeed a welcome additions to the existing literature on the subject. It is a must for all those who have been involved in the DPAP administration, government officials and research scholars and libraries.

—A. R. Patel COST-BENEFIT ANALYSIS OF IRRIGATION AND DROUGHT PROOFING -1988 By
K.Puttaswamaiah,
Oxford and IBH
Publishing Co. Pvt. Ltd.
66 Janpath New Delhi -
110001. pp. 175 + xix.
ECONOMIC TIMES
17-9-89


Book Review
Cost-Benefit Analysis of Irrigation and Drought Proofing by K. Puttasamaiah, Oxford and IBH Publishing Go. New Delhi; 1989. Pages 175.

This book is an evaluation of the World Bank (IDA) assisted Project on Drought Prone Area Development Programme (DPAP) 1975-81 taken up in Bijapur District in Karnataka. The author collected first-hand data from selected villages in eight out of thirteen talukas covered under the programme. Post and preproject growth in net income, product mix, before and after, changes in consumption expenditure were examined; also the difficulties faced the recipients.

Bijapur district covers an area of 17,069 sq. km. and a population of 23.99 lakh. Density is 141 per sq. km. Climate is generally dry with a wide variation in rainfall pattern. Normal rainfall of the district is 550 mm per annum. Jowar and bajra are the principal food crops of the district. The total outlay on the IDA assisted project was Rs. 1169 lakh. 'Project management' i.e. administration took only about 17 per cent of the total cost. Utilisation of funds was 74 per cent which reflected economic efficiency in the implementation of the project. It is not surprising that the World Bank was happy over the conduct of the project.

K. Puttaswamaiah has a firm grip on the economy of Karnataka, being the author of 'Economic Development of Karnataka. From what he describes, there is no doubt about the beneficial impact of the programme under various DPAP schemes.

To illustrate, let us take minor irrigation tanks on which the highest outlay of Rs. 242.96 lakh was made. All the tanks were studied. By definition, minor' irrigation projects are those whose cost is less than Rs. 1 crore by way of investment. Due to the introduction of the project, the overall intensity of cropping increased from below 90 per cent to 123.03 per cent. Noticeable feature is the change from unirrigated jowar and groundnuts to irrigated jowar and irrigated groundnuts. Irrigated jowar at 173 hectares was larger than unirrigated which was 115 hectares. Incremental income in absolute terms varied from a minimum of Rs. 800 to a maximum of Rs. 3500 per hectare. Production of land improved in case of soil conservation and dry land farming. Income increase varied between Rs. 200 to 400 in case of soil conservation and Rs. 600 to Rs. 800 in case of soil conservation followed by adoption of dry land farming.

Dairy development programmes yielded a net additional income of lis. 7SS to Rs. 918 per household. Dairy programme accounted for 15 to 35 per cent of the total income of the family. In case of sheep development, the net income per house-hold increased by Rs. 2000. Sheep development income formed as much as 50 per cent of the family income.

Afforestation and wood lots (small plantation) showed an impressive performance. Income from sericulture worked out at Rs. 6000 in case of big farmers, Rs. 7500 in case of small farmers and Rs. 4000 for marginal farmers per year. In case of horticulture, more than 50 per cent of beneficiaries were small land marginal farmers.

Fish catch registered an increase , employment also increased by about 50 man days a year per family under fisheries programme. The limiting factor under various schemes that held up speedy expansion was credit. The author has observed that assets formation was limited, because the sample beneficiaries were in the take-off stage from the self-sustaining' to a 'well-off stage'; hence income increase was largely spent on consumption. These observations, however, have policy implications and deserve to be noted. It may be true of individual assets, but not community assets created under the programme.

The design of the study is commendable and the author has made a meticulous in-depth analysis of the project taking into account the various factors. His appraisal of the DPAP programme in Bijapur district is of a sufficiently high order. The book is highly recommended.

                                                                                                            S.M. Shah