Irrigation Subsidies Research Articles

Do climate adaptation programmes potentially exacerbate rural inequality? Identifying beneficiaries of a drought mitigation scheme in Maharashtra, India

ABSTRACT The adverse implications of climate change can exacerbate socially uneven distributions of vulnerability. Therefore, climate adaptation programs are maladaptive if benefits are captured by privileged social groups, contributing to heightened socio-economic inequality and leaving the plight of highly vulnerable population segments unaddressed. This paper examines this potential using the case of Birsa Munda Krishi Kranti Yojana, an irrigation subsidy program for Scheduled Tribe farmers administered by the Government of Maharashtra, India. We investigated this scheme in Talasari block, an impoverished rural sub-administrative area 135 km north of Mumbai. The research shows that benefits from the scheme tended to flow towards more well-off agricultural households, notwithstanding checks-and-balances within the program that sought to prioritise the needs of poorer farmers. In turn, these distributional effects contributed to intensified agrarian class stratification by providing more well-off farmers with enhanced capabilities to respond to climate stresses, shedding important conceptual insights into the interplay of climate change and government policy for class mobility within smallholder and tribal populations. The evidence from this paper highlights the imperative for inclusive agricultural development and raises questions about agricultural subsidy programs as policy levers to address climate adaptation.

Input subsidies, public investments and agricultural productivity in India

The fund allocation in agricultural sector in India is heavily tilted toward input subsidies provision; however, researchers seem to favor investment expenditure instead. The present paper seeks to compare the usefulness of input subsidies as compared to investment with regard to agricultural productivity so that policy makers hit the right tool and avoid less productive state expenditure. We investigated a total of four regression models using autoregressive and distributed lag cointegration in a time series framework covering period from 1983 to 2019. The first model considers all input subsidies in aggregate form, and the rest three models take input subsidies in disaggregate forms, namely fertilizer subsidy, irrigation subsidy and power subsidy, respectively. It is observed from the results that input subsidies still contribute more than what public investment does to agricultural productivity. It is also found that power subsidy is the most effective component of input subsidies followed by fertilizer subsidy. Hence, government expenditure on input subsidies is justified on the ground that it ensures all farmers to have access to affordable agricultural inputs. Targeted subsidies combined with adequate investment in agricultural infrastructure could deliver long-term agricultural development in India.

Farmers’ Approaches to Drip Irrigation Applications and the Factors Affecting the Utilization from Drip Irrigation Subsidies: Case of Adana and Niğde Provinces

In this study, the socio-economic structure of the agricultural enterprises that utilized from the in-field drip irrigation subsidies or not, were determined, a comparative analysis of their knowledge levels and opinions about drip irrigation method was made in Adana and Niğde provinces. Besides, the factors affecting the benefit of the producers from drip irrigation subsidies were determined. A survey was conducted with a total of 26 producers, 10 of which utilized from drip irrigation subsidies in Adana and 16 of which utilized from drip irrigation subsidies in Niğde. In order to make a comparison between the groups, a survey was conducted with the same number of producers who did not utilize from drip irrigation subsidies. In the analysis of the data, basic descriptive statistics such as mean, standard deviation and percentage calculations were used. The continuous data obtained were subjected to the t test and the discrete data to the chi-square test to determine whether there was a difference between the producers who utilized and did not utilize from drip irrigation subsidies. Tendency of the producers to utilize from drip irrigation subsidies was determined using binary logistic regression analysis. It was determined that the age of the producers, the number of family members, their non-agricultural income and the type of activity they were engaged in affected the drip irrigation subsidies negatively, while the education period, the size of the irrigated land and the number of family members working in agriculture had a positive effect. Considering that the purpose of drip irrigation subsidies is to ensure more effective use of limited water, to increase productivity, to reduce labor and production costs, and to increase the prevalence of drip irrigation systems, it is possible to say that drip irrigation subsidies was applied in accordance with its purpose.

Factors Affecting the Utilization from Drip Irrigation Subsidies of Grain Maize Enterprises: Case of Kahramanmaraş Province

Bu çalışmada, Kahramanmaraş ilinde dane mısır üretimi yapan ve tarla içi damla sulama desteğinden yararlanan ve yararlanmayan işletmelerinin sosyo-ekonomik yapısı belirlenmiş ve damla sulama desteğinden faydalanma durumunu etkileyen faktörler tespit edilmiştir. Çalışmanın materyalini, Kahramanmaraş ilinde 2012-2017 yılları arasında Tarım ve Orman Bakanlığı tarafından verilen damla sulama desteğinden yararlanan ve yararlanmayan üreticilerle yapılan anket çalışmaları oluşturmaktadır. Basit tesadüfi örnekleme yöntemine göre 45 damla sulama desteği alan dane mısır üreticisiyle anket çalışması yapılmış olup, aynı sayıda damla sulama desteğinden yararlanmayan ve salma sulama yapan dane mısır üreticisi ile de anket çalışması yapılmıştır. Üreticilerin damla sulama desteği alma eğilimleri ve bu eğilimlerinde etkili olan faktörler lojistik regresyon analizi kullanılarak belirlenmiştir. Üreticilerin yaşlarının, eğitim sürelerinin, aile birey sayılarının, toplam işledikleri arazi büyüklüğünün ve toplam tarımsal gelirlerinin damla sulama desteği alma durumunu pozitif, tarımsal deneyimlerinin, ailelerinde tarımda çalışan kişi sayısının ve dane mısır üretim alanının ise negatif yönde etkilediği
 belirlenmiştir. Elde edilen bulgular doğrultusunda tarımsal üretimde damla sulama sisteminin kullanımının yaygınlaştırılmasında karar vericiler tarafından çeşitli stratejiler geliştirilebilir ve söz konusu desteklemenin etkilerine göre politikalar geliştirilerek gelecek nesillere aktarılacak kısıtlı kaynakların etkin kullanımı sağlanabilir.

Irrigation subsidy policy in Chile: lessons from the allocation, uneven distribution and water resources implications

ABSTRACT Globally irrigation subsidies are utilized to boost modernization and increase irrigation efficiency. This paper examines the effects of the irrigation subsidy programme in Chile by reviewing 32 years of allocations and exploring the drivers and consequences of the subsidy programme with a clear market approach based on competition and a state risk-free strategy. Our analysis reveals that, despite the flexibility in targeting, the results indicate an uneven allocation to smallholders’ detriment, a state inability to identify farmers’ needs, market concentration and a bias towards agricultural expansion. As long as the programme remains unaltered, it will threaten agriculture and water resources’ sustainability.

How can public policy encourage private investments in Indian agriculture? Input subsidies vs. public investment

Private on-farm investment has been lacking by smallholders in Indian agriculture. This study explores the efficiency of alternative public expenditures to support Indian agriculture and encourage private on-farm investment. Specifically, the paper examines the crowding-in effect of input subsidies and other forms of public investments on private on-farm investment. The study uses an autoregressive distributive lag model and data from 1980 to 2018. Findings reveal that irrigation subsidy strongly induces private on-farm investment over the long-run and short-run. However, public expenditures on research, education, and the area served by public canals have a significant crowding-in effect on private on-farm investment over the short and long run. Other factors that stimulate private investment in Indian agriculture include institutional credit, favorable agricultural terms of trade, and future demand for food. Thus, policymakers should better target and rationalize public expenditures programs. Policy recommendations include removing unproductive input subsidies (such as fertilizer and power subsidies) and diverting the freed resources toward public investment in Indian agriculture.

Effect of Drip Irrigation Subsidies on Maize for Silage Production: Case of Edirne Province

Bu çalışmanın amacı Edirne ilinde damla sulama desteği programının silajlık mısır üretimi üzerine etkileri belirlemek ve destekten yararlanan ve yararlanmayan işletmelerde silajlık mısırın ekonomik ve verimlilik analizini yapmak ve teknik etkinliklerini tespit etmektir. 2012 ve 2017 yılları arasında destek alan 22 silajlık mısır üreticisinin tamamıyla anket çalışması yapılmış olup, aynı sayıda ve benzer özellikte destek almayan üretici ile de anket çalışması yapılmıştır. Silajlık mısır üretimine ilişkin üretim masrafları, brüt ve net kârlar ortaya konulmuştur. Etkinlik analizinde veri zarflama yöntemi, etki analizinde eğilim skoru eşleştirme yöntemi kullanılmıştır. Üretim masrafları toplamı destek alan işletmelerde 1538.20 TL da-1, destek almayan işletmelerde 1597.09 TL da-1 olarak belirlenmiştir. Brüt kâr destek alan ve almayan işletmelerde sırasıyla 865.03 TL da-1 ve 483.18 TL da-1 olarak hesaplanmıştır. Destek alan işletmelerde toplam teknik etkinlik 0.894, saf teknik etkinlik 0.958 olarak bulunmuştur. Destek almayan işletmelerde ise toplam teknik etkinlik 0.846, saf teknik etkinlik ise 0.913 olarak bulunmuştur. Ekonomik analiz sonuçlarına göre, destek alan işletmelerde silajlık mısır yetiştiriciliğinin daha kârlı olduğu görülmektedir. Etkinlik analizi sonuçlarına göre ise, destek alan işletmelerin destek almayan işletmelere göre daha etkin çalıştıkları sonucuna varılmıştır. Girdi kullanımı her iki işletme grubunda da hemen hemen aynı ve satış fiyatı aynı olmasına rağmen, etkinlik ve kârlılık farkı verimden ve destek alan üreticilerin etkin su kullanımından kaynaklanmaktadır.

Tarımsal Uygulamalarda Üreticilerin Çevre Algısının Analizi: Edirne İli Örneği

Bu çalışma, Edirne ilinde damla sulama
 desteklemesinden yararlanan ve yararlanmayan üreticilerin tarımsal uygulamalar
 konusunda çevre algılarının belirlenmesi amacıyla hazırlanmıştır. Edirne ilinde
 2012-2017 yılları arasında damla sulama desteği alan 41 üreticinin tamamıyla
 anket çalışması yapılmıştır. Çalışmada, aynı sayıda damla sulama
 desteği almayan ve damla sulama desteği alan işletmelerle yaklaşık olarak aynı
 işletme özelliklerine sahip üreticilerle de anket çalışması yapılmıştır.
 Verilerin analizinde ortalama, standart sapma gibi tanımlayıcı istatistiklerden
 yararlanılmış ve oluşturulan gruplar arasında farklılık olup olmadığı ki kare
 testi ile ortaya konulmuştur. Üreticilerin çevre algılarının analizinde
 kümeleme analizinden yararlanılmıştır. Hiyerarşik kümeleme yöntemlerinden Ward
 tekniği ve hiyerarşik olmayan kümeleme yöntemlerinden de K-ortalama tekniği
 kullanılmıştır. Ki kare testi sonucunda,
 “tarımsal ilaçlar ve hormonlar çevreye zarar verir” ve “ilaçlama sırasında
 koruyucu maske takarım” yargılarının destek alma durumuna göre değiştiği, diğer
 faktörlerin destek alma durumuna göre değişmediği belirlenmiştir. Kümeleme
 analizi sonuçlarına göre, birinci kümede yer alan çiftçiler toplam kitlenin
 %81.71’ini, ikinci kümede yer alan çiftçiler %1.22’sini ve üçüncü kümede yer
 alan çiftçiler ise %17.07’sini oluşturmaktadır. Destek alan üreticilerin
 %85.37’si birinci kümede, %14.63’ü üçüncü kümede yer almıştır. Destek almayan
 üreticilerin ise %78.05’i birinci kümede, %2.44’ü ikinci kümede, %19.51’i
 üçüncü kümede yer almıştır. Sonuç olarak, üreticilerin tarımsal faaliyetler ve
 bu faaliyetlerin çevre üzerine olan etkileri konusunda ilgili kurumlar
 tarafından eğitilmeleri sağlanmalıdır.

Üreticilerin Damla Sulama Desteklemelerinden Faydalanma Durumlarını Etkileyen Faktörlerin Analizi: Edirne İli Örneği

In this study, utilization from drip irrigation subsidies in Edirne province was analyzed. For this purpose, total of 41 producers who utilized from drip irrigation subsidies between 2012-2017 years in Edirne province participated in the survey. Besides, the same survey was also conducted with the same number of producers who did not utilize from drip irrigation subsidies, but had the similar characteristics with the producers who utilized from drip irrigation subsidies for the comparison of the enterprises. During the analyzes of the data, normally distributed continuous data obtained for the groups were subjected to t-test, the data which were not normally distributed were subjected to Mann-Whitney U test and discrete data were subjected to Chi-Square Test and the differences between the groups were observed. It was utilized from logistic regression analysis for determining the factors affecting the utilization from the drip irrigation subsidies. According to the logistic regression analysis results, it was determined that farmers’ ages, total agricultural incomes, nonagricultural income, having soil analysis and agriculture insurance affected the utilization from drip irrigation subsidies positively and size of the family in the agricultural activities affected negatively. These results revealed that mostly, the farmers who were conscious and had higher incomes utilized from drip irrigation subsidies.

Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms

In an attempt to alleviate water scarcity, the government of China has introduced a water plan for the year 2030. Based on a dynamic computable general equilibrium model, this paper investigates how conservation of irrigation water, grain production, and the welfare of rural households will be affected by planned reductions to the irrigation water subsidy between 2018 and 2030. Four policy instruments, namely quantitative control (QC), quantitative control with a subsidy reduction (QC-SR), price control (PC), and price control with a subsidy reduction (PC-SR) are employed in the model. Most existing research has found that reducing the irrigation subsidy will lead to significant negative impacts to the agricultural economy, and especially to rural households. These predicted negative impacts are a barrier to agricultural water policy pricing reform. However, the results of this research show that a provincial subsidy reduction to 1% between 2018 and 2030 will have an insignificant impact on agricultural production as well as rural household incomes and welfare, despite the subsidy rate currently accounting for more than 90% of the total irrigation value at the macro level in most provinces. Furthermore, PC will create a demand for irrigation water, which is predicted to rise to more than five times the agricultural water planning level currently set for 2030, and PC-SR will not achieve the agricultural water planning goal.

Water-saving irrigation subsidy could increase regional water consumption

The promotion of water-saving irrigation on regional level will bring complex impacts on agricultural production, farmers' welfare, exploitation and utilization of water resource. The policy on the development of water-saving irrigation are not always positive and practical. The overall goal of this study is to analyze the impact on irrigation methods, plantation structure, water consumption and economic benefits brought by drip irrigation under film (DIUF) promotion policy. Based on a field survey in North China Plain, this study set three policy scenarios which limit total irrigation area and total water consumption. The results showed that: In terms of agricultural production and farmers’ welfare, DIUF promoted the utilization of irrigation methods (increased by 70%, 70% and 64%). Driven by economic benefits, farmers tend to grow economic crops which are relatively water-consuming to increase net income (increased by 77.54%, 60.72% and 46.52%). On the aspect of regional water resource development and utilization, subsidy on the DIUF increased the total regional water consumption with the change of irrigation methods and plantation structure (increased by 34.27%, 32.20% and 21.84%). Surface and underground water compensation through reflux and leakage decreased (decreased by 78.65%, 70.93% and 73.20%). These results and implications offer an insight to improve strategies and policies that enable to cope with water scarcity in arid area.

Impact analysis of reducing multi-provincial irrigation subsidies in China: a policy simulation based on a CGE model

Water pricing policy is believed to be an efficient method for addressing the water scarcity problem in China. The motivation of this study is to provide a better understanding of how reducing irrigation subsidies impacts farming sectors and rural households. We apply a Computable General Equilibrium model to simulate the irrigation water and irrigation subsidy in 16 provinces. The results show that reducing irrigation has great potential for resolving the water scarcity problem in China, especially for the provinces with high subsidy levels such as Guangdong, Shandong, and Jilin. The declines in farming outputs are significant, and then their producer prices and imports increase. Rural households suffer serious losses in food consumption, particularly for those in Jilin, Guangdong, and Shandong. As for policy recommendation, improving the mobility of cropland should be given greater attention for promoting water conservation, and improving the mobility of agricultural labor could mitigate the losses in the farming outputs and in the food consumption for rural households in most provinces. Reduction in irrigation subsidy as a policy option should be adopted gradually, and then increasing the water demand elasticity should be taken into account when the irrigation water price is close to the full-cost recovery level.

Comparative Evaluation between Water Parallel Pricing System and Water Pricing System in China: A Simulation of Eliminating Irrigation Subsidy

Abstract: The reform in water pricing plays a critical role in agricultural production, which is believed to have great water savings potential. We consider eliminating irrigation subsidies as a simulation and conduct a comparative evaluation between the water parallel pricing system (WPPS) and the water pricing system (WPS), which are incorporated into two computable general equilibrium (CGE) models, respectively. The results prove that, compared with WPPS, WPS would contribute higher capacities for water savings with more farming imports and less loss in farming output; households in rural and urban areas would benefit from more income and food consumption, which would be matched by increasing farming imports. A policy recommendation is that eliminating the irrigation subsidy should pay more concerns on alleviating the negative effects on farming outputs. Moreover, improvements in agricultural labor mobility and water demand elasticity are needed to enable more focus on the water conservation policy, pa...

Economics of Growing Okra under Drip Fertigation

Objective: To study the economic viability of Okra crop grown under different drip fertigation levels and different drip irrigation subsidy percentages. Methods: The field experiment was done at the research farm of department of Soil and Water Engineering, PAU, Ludhiana, India during 2014-15. The Nine drip fertigation treatments consisted of T1 - 60% fertilizer Nitrogen (N) with irrigation applied at 0.60 IW/CPE (irrigation water/cumulative pan evaporation) ratio, T2 - 60% fertilizer (N) with 0.80 IW/CPE ratio, T3 - 60% N with 1.00 IW/CPE ratio, T4 - 80% N with 0.60 IW/CPE ratio, T5 - 80% N with 0.80 IW/CPE ratio, T6 - 80% N with 1.00 IW/CPE ratio, T7 - 100% N with 0.60 IW/CPE ratio, T8 - 100% N with 0.80 IW/CPE ratio and T9 - 100% N with 1.00 IW/CPE ratio. Economical viability of drip fertigation was evaluated by computing Benefit-Cost ratio (B/C ratio) for each of drip fertigation treatment obtained by dividing gross returns by total seasonal cost. Economic analysis was done as per the cost involved in drip irrigation system components and requirement of fertilizer for one hectare area. The seasonal cost of growing okra under drip fertigation was calculated by considering depreciation, life of components, interest, fertilizers, insecticide, labors and cost of cultivation of growing Okra. Findings: In case of no drip irrigation subsidy, 60% drip irrigation subsidy and 75% drip irrigation subsidy, maximum B/C ratio was obtained in T5 treatment (2.25), (2.82) and (3.01) respectively; while minimum B/C ratio was obtained in T1 treatment (1.52), (1.9) and (2.03), respectively. The statistical analysis revealed that combination of fertilizers and irrigation levels had significant effect on B/C ratio of Okra production. Conclusion: It is economically viable to grow okra under drip fertigation with 80% fertilizer (N) along with irrigation applied at 0.80 IW/CPE ratio, only if drip irrigation subsidy provided by the government is higher than 30%.

Efficient water management policies for irrigation adaptation to climate change in Southern Europe

This paper evaluates economic and environmental effects of two incentive-based water management policies to address climate change impacts on irrigated agriculture: water markets and irrigation subsidies. A Southern European case study assesses farmers' long and short-run adaptation responses under climate change and policy interventions with a discrete stochastic programming model. Results indicate that climate change will likely have negative impacts on irrigation activities and water-dependent ecosystems in Southern Europe. However, the severity of impacts depends on government policy settings and farmers' adaptation responses. The comparison between water market and irrigation subsidy policies shows the advantages of water markets over irrigation subsidies in terms of both private and social benefits. These findings could guide policymakers on the design of efficient water institutions and policies to address climate change in the irrigated agriculture of Southern Europe.

Environmental costs of China’s food security

China’s successful achievement of food security in recent decades has resulted in serious damage to the environment upstream of the agricultural sector, on farm and downstream. The environmental costs of this damage are not only agro-ecosystem function and the long-term sustainability of food production, but also bio-physical including human health with impacts at all levels from the local to the global, and with economic loss estimates ranging from 7 to 10% of China’s agricultural gross domestic product (GDP).This paper presents a systematic analysis of the causes and impacts of these environmental costs for China’s cropping systems and crop-based livestock systems, and focuses on the nitrogen management. Since the 1980s most of the environmental costs have been related to the intensification of first grain production stimulated by high nitrogen fertilizer and irrigation subsidies, and then vegetable production and fruit trees, with the overuse and misuse of synthetic nitrogen fertilizer and manure being the dominant cause of eutrophication, soil acidification and high greenhouse gas emissions. However, during the last 10 years or so the expansion of intensive livestock production has become a serious cause of direct and indirect air and water pollution and is destined to be the main agricultural threat to China’s environment in the long-term unless a holistic strategy for sustainable intensification is adopted for the next and future 5 Year Plans. This strategy should focus on improving nutrient management to limit nitrogen overuse, which is now the main cause of the economic losses from agriculture’s damage to the environment.

Optimal Choice of Cotton Subsidy Mode in China—Empirical Study Based on Principal Component Regression

Adopt principal component regression for researching the optimal subsidy mode of cotton production in China. The result indicates that, from the perspective of economic stimulatory effect, the optimal cotton subsidy in China is farm chemical subsidy rather than seed subsidy. The reason is that there are frequent pest disasters in cotton producing areas in China. So farm chemical subsidy is the most important factor ensuring cotton production. Meanwhile, cotton varieties must be optimized and improved to increase the ability to resist pests and diseases, and the forecasting for pests and diseases in cotton production areas must be enhanced, early warning mechanism and monitoring must be built, and in addition, it is strongly recommended that if financial resources allow, subsidies like seed subsidy, fertilizer subsidy, machinery subsidy and irrigation subsidy could also put into effect in China.

Are we over-estimating irrigation subsidies in multipurpose water resources projects in India? methodological issues and evidence.

Irrigation subsidies have become a highly contentious issue over the years and alternative approaches and conventions have been evolved in measuring the magnitude of these subsidies. Given the fact that the capital cost is a sunk cost, this paper has used the O&M cost of the project and the gross receipts in computing irrigation subsidies. Further, the paper has suggested an improvement in the subsidy estimation methods by adjusting the O&M cost of the projects to multiple benefits of the irrigation projects using the Separable Cost Remaining Benefit (SCRB) method in three major multipurpose irrigation projects in the state of Andhra Pradesh. The study has revealed that currently irrigation subsidies are over-estimated. For example, the estimated average irrigation subsidy in Nagarjunasagar Project (NRSP) Right Bank canal based on currently practised methods, works out to be 428 per ha, whereas using the SCRB approach, it come to be 111/ha. The irrigation subsidy for NRSP is thus being currently over-estimated to the tune of almost 286 per cent. Similar is the case with the other two projects studied, though the magnitude of subsidy over-estimation could differ. The study has demonstrated how through the use of appropriate accounting methodologies, more informed and transparent estimates of irrigation subsidy can be derived. The inference from this paper is that reliable information about subsidies actually going to the irrigation sector could help in framing better pricing policies for irrigation water and in promoting more efficient use of irrigation water and utilization of subsidies. The outcome from the study will also be useful in finetuning the subsidy related discussions in the 12th Five-Year Plan documents.

The GSI’s Method for Quantifying Subsidies to Irrigation

The GSI's method for quantifying irrigation subsidies draws on the main components of the Net Cost to the Supplier approach. This focuses on measuring identifiable government expenditures as reported in budget reports and official documentation, avoiding the location-specific and time-dependant problems that arise in attempts to factor in fluctuating prices of water and the wide range of externalities, both positive and negative, that can be linked to irrigation subsidies. The long-term aim of developing the method is to move towards a consistent and internationally accepted approach for measuring irrigation subsidy intensities. The methodology is published in the form of a discussion paper, and comment on it is welcomed.

Input Pricing and Utilization Status for Boro Rice Cultivation: Do Farmers Benefit from Input Liberalization System?

A survey based study was conducted in three districts of Bangladesh to understand the mode of input pricing, problems of timely availability of inputs and the existing input subsidy scenario of Boro rice. Applying the conventional descriptive statistics, the study revealed that there are three major modes of payment for irrigation charges prevailing all over the study areas and it varied from location to location. In Satkhira, irrigation cost appeared to be 75% higher compared to that of Bogra under power operated schemes in cash payment system. Similarly, it was much higher in Satkhira under crop sharing payment system compared to that of cash payment system. Although irrigation cost stands low (Tk.5518/ha) in case of power operated scheme but frequent load shading and low voltage were considered as the major hindrance to the timely supply of irrigation water. The price of Urea fertilizer was 44% higher in Satkhira compared to that in Bogra, probably because of both reduced supply and creation of artificial crisis. The analysis further revealed that rice farmers were very hardly aware of the government subsidy on production inputs. Deep tube- well owners commonly known as water lords were found deriving the benefits of irrigation subsidy. Inadequate monitoring on fertilizer pricing and distribution led to price distortion in almost all over the study areas.