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Case Study
Low-cost drip-irrigation systems become part of program to strengthen agricultural markets
Technology Broadens Farmers' Markets
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Photo: International Development Enterprises India
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Farmers in Maharashtra now have access to modern, low-cost irrigation technologies.
By switching from subsistence farming to cash crop farming, Maharashtra's small farmers have gained an additional $200-$400 in income per year.
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Challenge
Most of India's poorest people are subsistence farmers who have little or no access to new
technology and markets for their produce. Access to water for irrigation is one of the most
critical constraints that small farmers face, and in semi-arid regions like Maharashtra,
small farmers struggle with scarce water resources and no access to irrigation technology
that would allow them to enter high-value crop markets. Effective drip-irrigation systems
have a high initial cost that most small farmers could not afford, leaving many unable to
grow enough produce even to feed themselves and their families.
Initiative
USAID worked with its partners to develop drip-irrigation technology that is tailored to poor
farmers in very dry regions of Maharashtra. They also sought to address other difficulties the
farmers were facing, such as their inability to access quality agriculture inputs and change over
to high-value horticulture methods. USAID supported the development of a value chain for drip
irrigation, including nurseries, manufacturers, dealers, installers and maintenance businesses.
Establishing a market to deliver these products and services to farmers helps maximize and sustain
the impact of the new technologies.
Results
Maharashtra developed a strong market for drip-irrigation technology that has significantly
changed the way small farmers manage their scarce resources. USAID's help has lowered the price
for drip irrigation technology 50 — 70 percent, and small farmers became the core of a robust,
localized and integrated market for drip-irrigation technology. By successfully switching
from subsistence farming to cash crop farming, Maharashtra's small farmers have gained an
additional $200 — $400 in income per year.
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