Book of Extended summaries ISDA

International Conference on Reimagining Rainfed Agro-ecosystems: Challenges &
Opportunities during 22-24, December 2022 at ICAR-CRIDA, Hyderabad
investments and returns. Projects with positive NPW are economically viable. It is estimated
using the following equation
NPV/W =
P
(1 + i) + P
(1 + i) +. . . . . . . . . . . . . . + P
(1 + i)
where, P1…n = Net Cash flow in year n (Difference between cash outflows and inflows); i =
Discount rate (9%); t = Time period (economic life of the Farm Pond based on respondents’
opinion)
Benefit – Cost Ratio (BC Ratio)
It is the ratio of benefits and costs of a project expressed in monetary terms. It reflects the
efficiency of the investment. BC ratio of more than one indicates the profitability of the project.
The project is selected if the BC ratio is more than one. It is estimated using the following
equation
BC Ratio =
∑
∑
B
(1 + i)
C
(1 + i)
where, Bn = Benefits (Cash Inflows) received in year t; Ct = Costs (Cash Outflows) in year t ;
I = rate of discount (9%); t = Time period (economic life of the Farm Pond based on
respondents’ opinion); i = Discount rate
Internal Rate of Return (IRR)
Internal rate of return (IRR) is the discount rate at which NPV of net cash flows (NPV/W) from
a project or investment equals zero, i.e. NPV/W=0. It is calculated by using the following
formula.
⎛
⎜
Lower discount Difference between
IRR = +
rate
the two discount rates X ⎜
⎜
⎜
⎝
Resilience through land and water management interventions, water management and governance
Present worth of
the cash flow at
the lower discount rate
Absolute difference
between the present
worths of the cash flow
at the two discount rates⎠
IRR should be higher than the opportunity cost of capital for the project.
Results
Wayanad is a hilly District in Kerala, is dominated by homestead farming, and plantation crops
are the major sources of income. The general cropping pattern of the respondents includes
coffee, pepper, rubber, banana, areca nut, ginger, turmeric and other crops. Results showed that
in the post-adoption period of CRA technology, i.e. farm pond ginger (142.03%) gained the
highest per cent area, it was followed by rubber (10.00%), coffee (4.69%) and banana (4.40%).
⎞
⎟
⎟
⎟
⎟
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