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An Economic Analysis of High Efficiency Irrigation Systems in Punjab, Pakistan

An Economic Analysis of High Efficiency Irrigation Systems in Punjab, Pakistan

Amar Razzaq1, Abdur Rehman4*, Abdul Hassan Qureshi2, Iqbal Javed3, Raheel Saqib5 and Muhammad Nadeem Iqbal6 

1College of Economics and Management, Huazhong Agricultural University, Wuhan (430070), China; 2Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan; 3Department of Economics, University of Lahore, Sargodha Campus, Pakistan; 4Department of Agricultural Economics, Faculty of Agriculture, Gomal University Dera Ismail Khan, Pakistan; 5Department of Agricultural Extension, Education and Communication, the University of Agriculture Peshawar, Khyber Pakhtunkhwa, Pakistan; 6Leader and Management Studies Department, National Defence University, Islamabad, Pakistan.

amar.razzaq@webmail.hzau.edu.cn  

ABSTRACT

The growing demand for water resources highlights the need for improved management of this diminishing resource to ensure high water productivity. In order to cope with this situation, it is imperative to make use of available water resources more efficiently through high-efficiency irrigation systems (HEIs). The present study aimed to conduct the economic analysis of high efficiency irrigation systems in Punjab province of Pakistan. We also measured and compared the water productivity of modern and conventional-irrigated farms. We used primary data collected from 120 farmers located in Nurpur Thal, Bhalwal, Sargodha and Lodhran districts of Punjab province. These areas were purposively selected based on relatively higher concentration of HEI infrastructures installed on the farms. Sprinkler irrigation system was mainly installed on wheat crop while the drip irrigation systems were installed on mango orchards. Therefore, one half of the sample consisted of modern and conventional farmers growing wheat crop and the other half of the sample consisted of modern and conventional farmers growing mango orchards. Economic analysis measures of benefit-cost ratio (BCR) and net present value (NPV) were estimated. The results of the study showed that the users of high-efficiency irrigation systems (sprinkler and drip irrigation) earned higher gross margins. The BCR and NPV values showed that installation of HEI systems was an economically feasible option. In addition, water productivity at modern farms was higher than those of conventional farms. Our results showed that most of the farmers using HEIs were large farmers, therefore, we suggest that policy interventions should be directed at increasing the adoption rates among small farmers. This could be done by spreading awareness among the farmers about the economic benefits offered by HEIs. 

 

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Sarhad Journal of Agriculture

June

Vol. 36, Iss. 2, Pages 374-733

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