Comparative Analysis of Two Options for Irrigation in Agriculture

 

Suppose you have a 1500 square yard field and two options to irrigate it. One is to rent the water supply, and the other is to install your own submersible pump and generator. Let’s conduct a comparative analysis of the costs and risks of both options.

Option 1: Renting Water for Irrigation

• Cost of irrigation each time: ₹700
• Field security: With this option, you don’t need to buy your own pump or generator, so you won’t have to bear the cost of security.
• Transport costs: You will only need to go to the field to call the person (or call them on the phone) each time.
• No maintenance and security stress: Since the pump or generator is not yours, you won’t have the responsibility of maintaining or securing it.

Option 2: Installing Your Own Submersible Pump and Generator

• Initial cost:
  • Submersible pump: ₹31,000
  • Generator: ₹25,000 - ₹35,000 (price may vary)
  • Total initial cost: ₹56,000 - ₹66,000
• Security costs: There is a risk of theft in the field, and since there is no employee to take care of it daily, you will need to arrange for security, which can add to the cost.
• Transportation: The field is 5 km away from your house, so you will need to go to the field each time for the pump and generator, which increases transportation costs.
• Maintenance and fuel costs: You will need to spend on diesel to run the generator, and maintenance will also be required.

Analysis and Calculation: Suppose you choose Option 2 (your own pump and generator), then you will need to spend up to ₹66,000 as the initial cost. After that, the cost of irrigation each time might be as follows:

• Cost of irrigation (with pump and generator): ₹500 - ₹600 per irrigation (assuming the cost per irrigation is ₹500 using the pump and generator).
• Therefore, to recover your ₹66,000 investment, you would need to irrigate approximately 110-120 times.

If you choose Option 1 (renting water), you will spend ₹700 each time.

Conclusion: If you do not need to irrigate very frequently, Option 1 (renting water) will be more economically beneficial for you. This option eliminates the initial cost, security, maintenance, and transportation hassles, and you will only need to spend ₹700 each time.

However, if you need to irrigate frequently and for a long duration, installing your own pump and generator could be advantageous, as the cost over time could be lower. But in this case, you will need to make a large upfront investment and consider additional expenses like security and fuel.

Depending on the situation of your field and water requirements, Option 1 (renting water) would be more effective and cost-effective.