An Economic Analysis of High Efficiency Irrigation Systems in Punjab, Pakistan

The growing demand for water resources highlights the need for improved management of thisdiminishing resource to ensure high water productivity. In order to cope with this situation, it is imperativeto make use of available water resources more efficiently through high-efficiency irrigation systems (HEIs).The present study aimed to conduct the economic analysis of high efficiency irrigation systems in Punjabprovince of Pakistan. We also measured and compared the water productivity of modern and conventional-irrigatedfarms. We used primary data collected from 120 farmers located in Nurpur Thal, Bhalwal, Sargodhaand Lodhran districts of Punjab province. These areas were purposively selected based on relatively higherconcentration of HEI infrastructures installed on the farms. Sprinkler irrigation system was mainly installedon wheat crop while the drip irrigation systems were installed on mango orchards. Therefore, one half of thesample consisted of modern and conventional farmers growing wheat crop and the other half of the sampleconsisted of modern and conventional farmers growing mango orchards. Economic analysis measures ofbenefit-cost ratio (BCR) and net present value (NPV) were estimated. The results of the study showed thatthe users of high-efficiency irrigation systems (sprinkler and drip irrigation) earned higher gross margins. TheBCR and NPV values showed that installation of HEI systems was an economically feasible option. In addition,water productivity at modern farms was higher than those of conventional farms. Our results showedthat most of the farmers using HEIs were large farmers, therefore, we suggest that policy interventions shouldbe directed at increasing the adoption rates among small farmers. This could be done by spreading awarenessamong the farmers about the economic benefits offered by HEIs.