The economic impact of micro-irrigation scheme “Per Drop More Crop”: A case of sugarcane, banana and cotton cultivation in Maharashtra

This paper estimates the economic impact of the micro irrigation adoption scheme “Per Drop More Crop” of the Government of India for sugarcane, banana and cotton cultivation in selected districts of Maharashtra. Beforeafter comparison is adopted using the data collected from the pre-tested interview schedules from 116 drip irrigation adopters in Maharashtra. After drip irrigation adoption, farmers had higher yields, profits and saved water across three crops. Per hectare yield of banana, sugarcane, and cotton increased by 73%, 36% and 80% respectively. With drip irrigation, farmers were able to grow sample crops with higher intensity. Net returns for banana, sugarcane, and cotton increased by 202%,5237%, and 296% respectively. Farmers were able to recover the fixed cost of drip irrigation (after deducting subsidy) within the first year itself.