Financial Feasibility and Policy Impact of Farm Pond Construction in Jaipur District of Rajasthan, India

Abstract

This study aimed to assess the economic feasibility of investing in farm ponds among farmers in Jaipur district, Rajasthan. Primary data for this study were taken from eighty farmers, including 40 beneficiaries of RKVY-PDMC and MKSY and 40 non-beneficiary farmers for the agricultural year 2021-22. The study's findings revealed that the total costs for constructing plastic-lined farm ponds were ₹242,348.56 without subsidy and ₹137,348.56 with subsidy per pond. Cost component-wise, machinery, labor, and material costs accounted for the majority (95%) of the total establishment cost without subsidy. The economic evaluation indicators demonstrated favorable outcomes for farm pond investments. The net present worth of the investment was positive, the benefit-cost ratio exceeded one and was positive, the internal rate of return exceeded the prevailing interest rate, and the payback period was relatively short, both with and without subsidies. This suggests that government should continue and increase subsidy support for plastic-lined farm pond construction to promote economic prosperity among farmers.