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Economic and financial aspects of multiple uses system

Explore the economic and financial aspects of multiple uses systems, with insights on valuing irrigation water in Sri Lanka. Learn about market-led approaches, value chains, and the impact on household incomes. Discover the key role of government and the importance of linking value chains to maximize economic returns. Economic valuation can be a vital decision-making tool for sustainable resource management.

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Economic and financial aspects of multiple uses system

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  1. Economic and financial aspects of multiple uses system Mary Renwick Multiple Uses Discussion Forum

  2. Economic values and decision making $

  3. Valuing Multiple Uses of Irrigation Water: Sri Lanka Uda Walawe • Background • Poor Performance • Valuation work Univ. of Minnesota & IWMI

  4. Results Irrigated Crops $25m/yr • Paddy $8.1 m • OFCs $3.5 m • Bananas $13.5 m Home Gardens $8m • Home $2.03m • Marketed $5.97m [insert pic]

  5. Results Domestic Use $140,000/yr Fisheries $743,000/yr • Home $64,000 • Marketed $679,000 • Fishers $390,000 • Sellers $289,000

  6. Value in Alternative Uses Banana OFCs Rice

  7. Market-led Approach to MUS: SIMI* • Background • Micro-scale MUS • Market-led approach

  8. MUS Development • Domestic & Irrigation • Surplus water for irrigation • 28 community systems • 1,000 households • Cost • $100 (tap) • $10-$35 (irrigation equip) • Benefit • Income >$200/yr • Health & nutrition MUS with dual tap for drip irrigation and domestic use. Low cost water storage tank for an MUS scheme.

  9. How it Works … The Value Chain • Input Supplier • Producer • Output Markets

  10. Supply-chain development: A key supporting investment for MUS • Results: • 240 agrovets • 5 tap/micro irrigation manufactures • 2 drip assemblers • 133 micro-irrigation dealers • 7 extension services (7 districts) • Sales of 26,230 micro-irrigation systems • Note: Only 1,280 purchased via micro-credit Appropriate inputs for agriculture, drinking water (and sanitation) Embedded services

  11. Producer • Build capacity of early adopters • Facilitating access to inputs and credit • Education • Results: • 31,000 households (200,000 people) in 1500 farmer groups • $7.3 million in increased incomes (BCA 3:1) • Year 1: $100/hh for 16,000 households • Year 2: $195/hh for 26,000 households

  12. Market development: Critical for economic opportunities linked to MUS • Results: • 43 market collection centers • Established value chains across 9 districts serving 3 million

  13. Government: key role • Strategic investments • Focus on market failures

  14. Conclusions • Economic valuation of alternative uses can serve as a decision making tool • Opportunity cost of non-integrated management can be high • Linking value chain approach to MUS can increase economic returns and reduce subsidies

  15. Questions?

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