The Hindu Business Line : Outlook seen bullish for drip irrigation growth

NETAFIM, the $330-million global irrigation solutions major headquartered in Israel, is very bullish about the growth prospects for drip irrigation systems in the country.

``Many people wonder why the technology is not spreading here, without realising that already six lakh hectares in the country are under drip irrigation. In fact, India is today No. 2 in drip irrigation coverage after the US (which has 50-60 lakh hectares) and ahead of China,'' said Mr Zvi Feler, Managing Director, Netafim Irrigation India Pvt Ltd, a wholly-owned subsidiary of the Israeli parent, Netafim ACS.

According to him, the domestic drip irrigation market is worth about Rs 300 crore and growing by 20 per cent every year. Of the Rs 300 crore, Netafim's share is around 15 per cent, making it the second largest player after the Jalgaon-based Jain Irrigation Systems Ltd.

``Our own business has registered a compounded annual growth rate of 40 per cent since 2000. We account for about 50,000 hectares of the cumulative six lakh hectares covered by drip irrigation in India,'' Mr Feler said.

About 50 per cent of the Indian market is in Maharashtra, followed by Gujarat, Andhra Pradesh, Tamil Nadu and Karnataka, with bananas, mangoes, grapes, pomegranates and citrus fruits being the main crops covered.

``The demand is also growing for cotton and sugarcane. We have tied-up with southern sugar companies like EID Parry's and Sakthi Sugars for supplying our systems to their growers,'' Mr Feler informed.

But the real immediate boost to business is likely to come from the micro-irrigation projects launched by the Andha Pradesh and Maharashtra Governments, which aim at extending drip irrigation coverage by 4 lakh hectares and 7 lakh hectares, respectively, over the next 3-4 years. Mr Feler admitted that the main constraint to growth was the sheer costs involved in investing in these systems, which range from Rs 40,000 per hectare for mango orchards to Rs one lakh for vegetables, which require closer spacing. This is being partially addressed through subsidisation by State Governments to the extent of 50-70 per cent.

Mr Feler, however, claimed that the payback for these investments was over 1-3 crops. Drip irrigation basically involves water release at very low rates (but at frequent intervals) from a system of small diameter pipes fitted with outlets called emitters located near each plant. Unlike normal flood irrigation, the water is applied close to plants so that only the crucial root zone is rendered wet. This leads to 40-50 per cent water savings by way of reduced runoff and deep percolation losses.

Reduced but frequent wetting of the soil also raises yields by bringing down weed infestation and ensuring uniform and constant availability of moisture for the crop. Drip irrigation systems further allow fertigation or simultaneous application of fertilisers in aqueous solution through the emitters. By minimising nutrient loss through leaching and runoff water, fertiliser use efficiency is enhanced.

``The actual yield gains from drip irrigation reported by farmers are to the tune of 50 per cent,'' Mr Feler added (see Table).

Netafim's manufacturing facility at Savli (Vadodara) currently has a drip line production capacity of six crore meters per year, which is being raised to 10 crore meters through a second plant scheduled to come up in Andhra Pradesh by end-2005.