Impacts of integrated watershed development using economic surplus method

Abstract

Adarsha watershed is a successful scientific narrative of sustainable integrated watershed programme conceptualized by ICRISAT team for efficient management of natural resources. Creating a proof of concept and a learning site for extension agents, NGOs, the national agricultural research system, policy makers and farmers was one of the main objectives of ICRISAT team when the institute started its work in the Adarsha watershed in Kothapally village, Ranga Reddy district, Telangana, India, in 1999. Water harvesting structures, 14 check dams, 97 gully control structures of loose stones, 1 gabion structure and others together have created a net storage capacity of 21, 000 m3 which harvested nearly 70, 000 m3 runoff water per year and have brought an additional area of 55 ha into irrigation by improving the groundwater table from 2.5 to 6.0 m. With improved technologies, farmers obtained high maize yields (28%) than the base year. Cotton has observed major yield gain (387%), major because of both technological change (Bt cotton) and assured water availability. Pigeon pea has recorded an increased productivity over the timeline (61%). Watershed has contributed to improve resilience of agricultural income despite the high incidence of drought in the watershed in 2002. Whilst drought-induced shocks reduced the average share of crop income in the non-watershed area from 44% to 12%, this share remained unchanged at about 36% in the watershed area. Livestock sector also contributed significantly to the total household income in watershed villages even during drought situations. Reduction in marginal cost due to supply shift has improved the cost-benefit ratio across the crops and ranged from 1.72 in cotton to 4.1 in pigeon pea. The BCR is worked out to be more than 2 and IRR 31%, implying that the returns to public investment such as watershed development activities were feasible and economically remunerative. The NPV worked out to be Rs. 141 lakh INR for the entire watershed. The total treated area in the watershed was around 465 ha, and the NPV per ha worked out to be Rs. 30, 000 INR which implied that the benefits from watershed development were higher than the cost of investment of the watershed development programs. The study revealed that the watershed development has the potential for poverty reduction by generating impressive returns on investment even during drought year. The new generation watershed intervention emphasizes achieving the food and income security of farmers while maintaining the integrity of the eco-hydrology and other natural systems in the watershed.