| Abstract: | Against the background of the rapid decline in irrigation water potential and low water‐use efficiency in the flood (conventional) method of irrigation, drip irrigation has recently been introduced in Indian agriculture. Besides saving a substantial amount of water, it also helps to increase the productivity of crops. This study attempts to evaluate its impact on sugarcane using farm‐level data from Maharashtra. Using a discounted cash flow technique, it was found that productivity was 23% higher than that under the flood method of irrigation, with water saving of about 44% per hectare and electricity saving of about 1059 kwh/ha — in short, drip investment in sugarcane cultivation remains economically viable even without subsidy. |
