Can Efficient Irrigation and Water Pricing Sustain Kerala’s Banana Boom?

Abstract

Water is vital for life and ecosystems, yet global freshwater supplies are declining amid environmental degradation, rising food demand, and population growth. Agriculture consumes about 80% of available water, prompting efforts to expand irrigation infrastructure to meet increasing demand. This study investigates irrigation practices and economic efficiency of Nendran banana cultivation in Thrissur district, Kerala, amidst concerns about the freshwater availability. Data since 2019-20 indicates that private wells irrigated 1,17,763 hectares of the state's total net irrigated land (4,04,102 ha), with the highest contribution by Thrissur district (26.26%), Focusing on the Kodakara and Chalakudy blocks, the research utilizes a purposive sample of 120 commercial banana growers employing surface irrigation with motor pumps. Data Envelopment Analysis (DEA) is employed to assess technical, allocative, and economic efficiencies of the irrigation water used for banana production. The Cobb-Douglas production function is also used to determine the marginal pricing of irrigation water in the study area. The findings indicated an average private investment of Rs. 19,479 per hectare for owned land and Rs. 8183 per hectare for leased land for irrigation. The technical, allocative, and economic efficiencies are calculated to be 0.61, 0.87, and 0.53 respectively. The marginal value of irrigation water is estimated at Rs. 22.31 per cubic meter. These findings suggest potential for improvement, particularly in transitioning from surface irrigation to more efficient micro-irrigation methods.