Financial Daily from THE HINDU group of publications Sunday, Jun 27, 2004 |
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Corporate
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Announcements Netafim thrust to boost drip irrigation Our Bureau
Chennai , June 26 NETAFIM Irrigation India Pvt Ltd plans to set up a production facility for drip irrigation system in Andhra Pradesh or Maharashtra and expand its existing factory in Gujarat, according to its Managing Director, Mr Zvi Feler. Addressing presspersons here on Friday, Mr Feler said that the company, a wholly owned subsidiary of Netafim, Israel, has a capacity to produce about 100 million metres of drip irrigation lines a year. The capacity will increase by about 50 per cent this year. He expects growth in demand for drip irrigation systems because of the increased awareness among farmers of the need to conserve water. Drip irrigation not only conserves 30-50 per cent water when compared with conventional irrigation but also increases yields. For instance, sugarcane yields have increased from 25-30 tonnes an acre to 60-70 tonnes. Sugarcane constitutes nearly 30 per cent of the market for drip irrigation systems, he said. Also, the Union Government has said that it would adopt the recommendations of the task force on drip irrigation, which submitted its report early this year. It envisages investments of about Rs 50,000 crore over several years to set up infrastructure for drip irrigation. Andhra Pradesh and Maharashtra have implemented drip irrigation projects covering 4-lakh hectares to 7-lakh hectares. Karnataka, Rajasthan and Tamil Nadu have also evinced interest, Mr Feler said. The cost of a drip irrigation system could range from Rs 10,000 an acre for mango to about Rs 1,20,000 for medicinal plants. The farmer can recover the cost in two cropping cycles and the system is guaranteed for five to seven years. With proper use the system could work for up to 15 years. Mr Feler said that technical support is key to the success of drip irrigation. There is more to it than just setting up the pipelines and drippers. Netafim tailors each drip irrigation system to the needs of the farmers and provides consistent back up. Business has been growing by about 40 per cent each year for the company. Netafim, Israel, the parent company, is among the largest players in the field with 13 manufacturing facilities in various countries, and an active presence in 120 countries. Its global business is estimated at $350 million and its market share is 25 per cent, according to Mr Feler.
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