This case study is referred to in the report, Collaboration: Preserving water through partnering that works. There is one for each step of the Collaboration Framework. Click on the step you would like to find out more about to read the supporting case study.
Cotton is one of the most important cash crops in the world and despite the development of synthetics, cotton remains one of the most important fibres. India is the second largest producer of cotton globally. But, cotton is one of the most water consuming crops because of the frequent flood irrigation needed in its production.
If flood irrigation is replaced by drip / micro irrigation systems (MIS), water consumption can be reduced by as much as 50%. The adoption of MIS by Indian cotton farmers had for a long time been limited. So the challenge was to increase adoption of MIS by cotton farmers in India.
The stakeholders in this challenge –
First, they identified the key reasons for the low adoption rate by conducting a study to establish farmers’ understanding of the relevance of MIS systems in the cotton value chain.
The key findings of the study were:
The next stage was to develop the access to finance projects that would enable farmers to adopt the MIS systems.
In the pilot areas 300 farmers were given access to finance through support from regional NGOs throughout the borrowing process. Banks supported the project, pre-sanctioned the loans and helped fast track the lending process. The banks also provided lower rates of interest compared to regular loans, reduced margin and security requirements and reduced the documentation requirements for the farmers.
In a drought year, when the sales of MIS systems declined in the pilot area the sales levels were sustained.