Water scarcity is a pressing global issue that affects many regions, especially those with limited access to freshwater resources. It has significant implications in agriculture, as the sector heavily relies on water for irrigation. As demand for water increases due to population growth and climate change, agriculture faces mounting challenges in ensuring sustainable water use and food security. Considering the water scarcity, one of the methods introduced to increase the water use efficiency in Indian agriculture is drip method of irrigation (DMI). In contrast to surface irrigation methods, drip irrigation delivers water directly to the crop's root zone through a system of pipes, significantly reducing water loss due to evaporation and distribution (Narayanamoorthy, 2005). A well-designed and properly managed drip irrigation system can achieve an on-farm irrigation efficiency of approximately 90 per cent, while surface irrigation typically has an efficiency of only around 40 per cent.

Coconut, often called the "tree of paradise," plays a significant role in Kerala's agricultural economy. The coconut palm supports food security and livelihoods for a large population in the state. In Kerala, coconut is cultivated on 7.6 lakh ha, with a productivity of 7,402 nuts/ha (CDB, 2024), which is much lower compared to other states. The primary reason for this is attributed to extensive cultivation under rainfed conditions. 

The coconut palm requires a continuous supply of water and nutrients from the soil to sustain the production of fronds, inflorescences, and nuts throughout the year (Jayakumar et al., 2017). Summer irrigation for coconut palms can significantly improve yields. Irrigating the palms could increase female flower production and helps to reduce premature nut fall. Effective methods for water application include micro-sprinklers, and drip irrigation. Drip irrigation is the most suitable irrigation system for coconut due to its wider spacing and it could enhance the yield of palms and reduces water wastage (KAU, 2024).

Given the increasing demand for water, it is important to find ways to use water more efficiently, especially for crops like coconut that need a lot of water throughout the year. By using this system, farmers can deal with water scarcity and make coconut farming more sustainable and profitable in the long run. Comparing the costs and returns of the coconut cultivation under water use efficient drip irrigation and less efficient conventional irrigation would help to understand the profitability of investments on irrigation. It also helps to suggests measures to make the cultivation more profitable. Taking these factors into account, present study was undertaken to estimate and compare the economics of coconut cultivation under drip and conventionally irrigated.

The study was carried out in the Palakkad district of Kerala, which was specifically chosen due to its low groundwater recharge (CGWB, 2022). The district is known as the “Granary of Kerala” as it is one of the agriculturally better performing districts in the state. Eastern part of the district is facing water shortage, especially during the months of December to May due to influence of western Ghats. Coconut is the major crop in this region, which was cultivated mainly under irrigated condition.

From the district, two CD blocks namely Chittur and Kollengode were purposively selected owing to their highest area under drip irrigated coconut cultivation. For comparing the economics, a total of 100 coconut farms were selected, with 50 drip irrigated farms and 50 conventional irrigated farms. In each block, 25 farms using drip irrigation and 25 using conventional irrigation were chosen, ensuring an equal representation of both methods. Farms having yield stabilized WCT palms (18-28 years’ age) under above specified condition for the last three consecutive years were only selected for ensuring uniformity. The data regarding the cost of cultivation, yield, price of output were collected from the respondents through field survey.

A. Cost of cultivation

Coconut is a perennial crop with both establishment and maintenance phase. The average productive life span of the coconut is 60 years with 7 years of vegetative phase. Cost of cultivation of cultivation of perennial crops is the sum of amortized establishment cost, maintenance cost, and interest on working capital. The establishment cost of coconut is amortized for 60 years.

• Total cost of cultivation = Amortized maintenance cost + Annual maintenance cost + Interest on working capital

• Amortized establishment cost =  y [i (1+i)n]

                                                            [1-(1+i)n]

Where, y = total establishment cost 

i = interest rate (7%)

n = productive life span of coconut                                                                      

palms (60 yrs)

• Interest on working capital = m * i

m = annual maintenance cost

i = interest rate (7%)

B. Cost of irrigation

For DIF, the cost of irrigation includes the amortized cost of drip and the annual maintenance cost of drip along with the of amortized cost of well, amortized cost pump set and other accessories and electricity cost. For CIF, the cost of irrigation comprises the amortized cost of irrigation channels and annual maintenance cost along with the of amortized cost of well, amortized cost pump set, tanks and other accessories and electricity cost.

The amortized cost on investment = 

                  Y∗ (1 + i) EL) ∗i] / [(1 + i] (AA) – 1,

  Where, 

Y= Compounded investment = Historical investment cost ∗ (1 + i) (AA)

EL = economic life of the items 

For well = 20 yrs (FAS, 2015)

Drip irrigation system = 15 years (NABARD, 2021)

Gross returns. The gross returns were calculated by multiplying average output price with the average yield obtained from the coconut palms.

Gross returns = Average yield * Average price of the output

Net returns. The net returns were calculated by subtracting total cost of cultivation from the gross returns.

Net returns = Gross returns – Total cost of cultivation.

A. Establishment Cost

The establishment cost for DIF and CIF was ₹276,505/ha and ₹281,889/ha respectively. The major share of the establishment cost was attributed to labour (73%) and irrigation expenses (18%). There was only a slight variation in establishment costs of DIF and CIF. The coconut farms had an average age of about 24 years, and considering this, most of the drip-irrigated palms were under conventional irrigation during the establishment phase. This is the reason for the minimal variation in the establishment costs between the two regimes. This result matched with the findings of Reddy et al. (2017), that the establishment cost of coconut cultivation in Tamil Nadu was ₹2,28,082/ha.

B. Maintenance Cost

The major components of maintenance cost of coconut farms were cost of FYM, fertiliser, human labour, machine labour and Irrigation expenses. The annual maintenance costs were ₹130,441/ha for DIF, which was 11 per cent lower compared to CIF (₹144,485/ha). The significant difference in the maintenance cost of both regimes, mainly due to high labour and irrigation expenses in the conventionally irrigated farms. The labour charges for DIF and CIF were ₹74653/ha and ₹68580/ha respectively (The labour cost for the irrigation was accounted in the irrigation cost). Labour costs were 9 per cent higher for conventional farms due to increased weeding expenses. The irrigation cost for DIF and CIF were ₹22038/ha and ₹31399/ha respectively. The higher irrigation cost in the CIF due to the construction and annual maintenance of the irrigation channels. Harvesting charges were not incurred, as the farmers were selling their produce directly to traders from Tamil Nadu, who determine the price after deducting the harvesting charges. This result aligned with the findings of Kishore and Murthy (2017), that the maintenance cost of coconut cultivation in Karnataka was ₹1,61,827/ha. Similar findings were observed in that study of the coconut production in Sindhudurg district  

C. Yield and Returns

Drip irrigated farms achieved a higher yield of 19,035 nuts/ha/year compared to 17,350 nuts/ha/year under conventional irrigation. Gross returns were ₹229,737/ha for drip irrigation and ₹208,718/ha for conventional irrigation. The net returns from drip irrigation farms were ₹70,470/ha/yr, more than twice the ₹30,543/ha/yr achieved by conventional farms. These findings were consistent with those of Chinnah and Suresh (2023), who reported net returns of ₹33,474/ha for small-scale coconut farmers in Tamil Nadu. However, the returns from drip irrigation farms were significantly higher due to the yield-enhancing potential of the drip irrigation system. Narendra et al., (2021) reported the yield of Arecanut in Karnataka district was higher in the drip irrigation method (9.62qtl/acre) compared to sprinkler (8.56qtl/acre) and flood (8.22 qtl/ acre) irrigation method.

Table 2: Establishment cost of drip irrigated irrigated farms (Rs/ha).

Table 3: Maintenance cost of farms (Rs/ha/year).

Note: The labour charge for the maintenance of channels and operating pumps included in the irrigation cost

Further studies should explore the long-term benefits of drip irrigation, including its impact on water conservation and soil health. Government incentives and training programs can enhance adoption among farmers. Expanding the scope to include environmental benefits, such as groundwater recharge and reduced carbon footprint, could further validate the sustainability of drip irrigation.