Economic Analysis of Dryland Agricultural Technologies

Rainfed agriculture is practiced in nearly half of the net sown area in the country. Improving profitability and sustainability of rainfed agriculture assumes importance because of the three concerns of growth, equity and sustainability. Sustainable rainfed agriculture is also critical to the livelihoods of millions of farmers and to ensure food and nutrition security in the country. The National Agricultural Research and Education System has developed a number of technologies in the areas of crop improvement, resource conservation, better pest and nutrient management, etc. These technologies were evaluated for their economic viability which is a necessary condition for adoption by the farmers. This paper reviews the work done on economic analysis of such technologies. Most of the rainfed agricultural technologies were found to be economically viable. However, the economic viability of some technologies, especially of rainwater harvesting technologies is dependent on the quantity and distribution of rainfall. However, there is a need to expand the analyses to include economic prices of inputs and outputs, ecosystem services, policy and institutional dimensions, etc. to be more relevant to policy making for more sustainable rainfed agriculture.