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Performance of Low Lift Pump and Shallow Tubewell Irrigation Systems in a Selected Area of Bangladesh

M. A. R. Khan
Former Post-graduate student
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh

S. Akhter
Lecturer
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh

T. H. Miah
Professor
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh

Abstract/ Executive Summary:

This study mainly examines the profitability of low lift pumps (LLPs) and shallow tubewells (STWs) minor irrigation project in Netrakona district from the viewpoints of individual investors as well as the participating farmers. A stratified random sampling technique was followed in this study. This study covered Bora season of 2002. Tabular methods of analysis as well as financial analysis and sensitivity analysis were applied. The major findings of the study are that participating farmers are making profit under both LLP and STW projects. Per hectare net returns of MV Boro paddy production under LLP and STW projects were Tk 14,075 and Tk 9,680, respectively. The results, however, show that the MV Bora growing farmers under LLP projects are making relatively a higher profit than the farmers of STW projects. From financial analysis, it is evident that both LLP and STW projects are profitable from the viewpoints of individual investors. The results of sensitivity analyses suggest that the profitability of the projects is positively related with command areas. Thus, the investment in LLPs and STWs largely affected either by increase in O & M costs or decrease in gross benefits. Finally, following the summary of the study, some recommendations were suggested for the study.

Keywords: Profitability, Benefit-cost ratio, Net present value, Internal rate of return

Location: Barni and Betati under Thakurakona union of Netrakona Sadar Upazila in Netrakona district

Start Date: 00-03-2002

End Date: 00-04-2002

Program Area: Crop-Soil-Water Management

Commodity: Irrigation scheduling

Objectives:

i. To assess the relative profitability of growing MV Boro paddy under LLP and STW minor irrigation projects from the viewpoints of individual client farmers;

ii. To assess the profitability of investors of LLP and STW minor irrigation projects for crop production.

Methodology:

Keeping in mind the main objectives of the study, two adjacent villages, namely Barni and Betati under Thakurakona union of Netrakona Sadar Upazila in Netrakona district were purposively selected for the collection of data. A stratified random sampling technique was followed in this study to minimize the time and cost of the study. At first, a list of 50 LLP owners and 65 STW owners were prepared from the selected two villages. Then 20, out of 50 LLPs from the village Betati and 20 out of 65 STWs of village Barni were randomly selected. At the second stage, 60 farmers with 3 from each of the selected LLPs and 60 farmers with 3 from each of the selected STWs, were randomly selected. Two sets of preliminary survey schedules were designed for collection of data for the study. One survey schedule was used for the detail information about the initial investments and operation and maintenance (O & M) costs of LLPs/STWs. The other set was used to collect the input-output data on MY Boro paddy production. The data were collected during the Boro season of 2002 since STW and LLP are usually used to a great extent in Boro season. However, the formal data were collected during the period of March to May 2002. The collected data were analysed with the purpose of achieving the objectives of the study. The cost and return analyses were done to assess the relative profitability of growing MY Boro paddy under LLPs and STWs. The BeR, NPY and IRR were calculated to examine the profitability of investment in LLP and STW minor irrigation projects. According to the statement of the Bangladesh Krishi Bank (BKB), Bangladesh Agricultural University (BAU) branch, the lending rate of agriculture (production) loan was 13 per cent in 2002. Thus, 13 per cent discount rate was chosen for the financial analysis of LLPs and STWs minor irrigation projects.

Source of Information: Progress. Agric. 15(1) : 9-22,2004, ISSN 1017-8139

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study revealed that the participating farmers under LLP projects earn more profits from the cultivation of irrigated MY Boro paddy due to comparatively less input (i.e., fertilisers,) costs. It may be noted here that LLP projects are extracting natural surface water from the river, which is more favourable for maintaining soil fertility and water quality. Extension workers should, therefore, encourage farmers to grow more MY Boro paddy under LLP projects to increase production as well as their farm incomes. Farmers or wealthy persons of the society, who are interested to invest in minor irrigation projects for supplying irrigation water to the crop fields can invest in both LLPs and/ or STWs in the similar areas of other parts of Bangladesh. Both Bangladesh Rural Electrification Board (BREB) and Bangladesh Power Development Board (BPDB) should ensure regular electricity supply during the MY Boro season so that timely and continuous supply of irrigation water could be ensured. Higher prices of input affect the profitability of both owners and client farmers of the irrigation projects. Thus, government should take necessary steps to ensure easy availability of the major inputs at their fair prices.

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