Book of Extended summaries ISDA

International Conference on Reimagining Rainfed Agro-ecosystems: Challenges &
Opportunities during 22-24, December 2022 at ICAR-CRIDA, Hyderabad
T1-28P-1321
Economic Feasibility of Farm Ponds: A case study of Drainage Line
Treatment Scheme in Wayanad District, Kerala
S. Lokesh 1 , P. Indira Devi 2 , A. Prema 2 and C.A. Rama Rao 1
1 ICAR- Central Research Institute for Dryland Agriculture, Hyderabad – 500 059, Telangana
2 Kerala Agricultural University Thrissur, Kerala
The growing population and changes in the dietary habit of people are driving the growing
demand for food crops. The agriculture industry is struggling to achieve the required
production, as natural resources, viz., soil, water and biodiversity, are depleting over the
decades. In addition to this, Climate Change is widening the demand-supply gap by triggering
variations in temperature, weather, and increased pest and disease prevalence. Besides these,
climate change is also hammering agriculture and food production with an increased
probability of floods and drought occurrences. Floods are causing severe soil and water erosion,
increased pest and disease incidences, and affect agricultural production. On the other hand,
there were moderate to severe drought incidences, which affected crop sowing and agriculture
production (Lokesh and Poddar, 2017). India is not different from this scenario. Various studies
conducted in this regard have revealed that there would be an increased flood and drought
occurrence in the country. The present study was conducted to understand the impact of farm
ponds on crop yields and assess the Economic feasibility of the same. The study assumed that
CRA technologies had impacted crop yield and the structures were economically viable.
Methodology
The study was conducted in the Wayanad District of Kerala, which was one of the most
climate-affected Districts of the State (GoK, 2014). Multistage Random Sampling was used in
the study to select the respondents, and the personal interview method was used to collect the
information from the respondents. Ten farm pond beneficiaries in each village and a village in
each block of the District were selected to make the total sample size 30. The percentage change
method is used to analyze the changes in yield levels and the economic feasibility of the
technologies tools like Net Present Worth (NPW), Internal Rate of Returns (IRR) and BC
ratios.
Net Present Value / Worth (NPV)
Net present value (NPV) is the difference between the Present Value of cash inflows and the
Present Value of cash outflows over time. It is mainly used to analyse the profitability of a new
project. Project with positive NPV is worth considering, and ranking the projects based on the
magnitude of NPV is also made. NPV also indicates the scale and volume of the project
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