Financial feasibility analysis of drip irrigation technology in banana: A case of south Gujarat

DEEPA B. HIREMATH; SHREESHAIL RUDRAPUR; T.N. PARMAR

DEEPA B. HIREMATH Department of Agricultural Economics, College of Agriculture Navsari Agricultural University, Waghai - 394 730, Gujarat, India
SHREESHAIL RUDRAPUR Department of Agricultural Economics, College of Agriculture Navsari Agricultural University, Waghai - 394 730, Gujarat, India
T.N. PARMAR Gujarat Green Revolution Company Limited, Bharuch, Gujarat, India

Keywords: Benefit cost ratio, Drip irrigation, Internal rate of return, Net present value, Payback period

Abstract

The present study attempted to make a comparative assessment of the economic feasibility of drip irrigation technology against conventional irrigation technology in banana.120 banana growers each practicing drip and conventional irrigation technology from Bharuch and Narmada districts were purposively selected there by making a total sample size of 240. The financial feasibility measures used for analyzing the investment in these technologies were Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR) and Pay Back Period (PBP). The results revealed that drip irrigation system in banana was found to be financially more feasible and economically more viable compared to conventional irrigation since all the criteria of project evaluation like discounted BCR, NPV and IRR were higher and PBP value was lower in case of drip irrigation compared to conventional irrigation as a result of higher net cash flows. Hence, awareness needs to be created about the benefits of this technology among the farming community through extension functionaries, NGOs, SAUs etc by the coordinated efforts of both public and private sectors.