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Measuring Irrigation Subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies

Published by:
Online Location
Publication date
Number of Pages
Type of Publication:
Working Papers & Briefs
Focus Region:
Asia and the Pacific
Focus Topic:
Land / Water / Resource Management
Type of Risk:
Biological & environmental
Policy & institutional
Type of Risk Managment Option:
Risk coping
K. Palanisami, Kadiri Mohan, Mark Giordano, Chris Charles
International Water Management Institute (IWMI), International Institute for Sustainable Development (IISD)

Andhra Pradesh is one of the leading states in India with respect to irrigation subsidies—with significant investments in irrigation infrastructure development, the provision of free electricity for irrigation and the ongoing development of large-scale irrigation support programs. The level of irrigation subsidies in the state has increased from INR428 million (US$9.56 million) in 1980–81 to INR8,402 million (US$187.75 million) in 1999–2000 (Reddy, 2003). From 2004 onward, the Government of Andhra Pradesh (GoAP) launched the Jalayagnam Program (Water Infrastructure Development Program), prioritizing the development of irrigation
infrastructure. The aim was to create a new command area of 4.45 million ha by investing INR1,662,630 million (US$37,153.74 million) by the year 2014.

The objectives of the study included: i) assessing the application of a common method for measuring irrigation subsidies in order to develop accurate, replicable and reliable subsidy estimates and ii) providing policy advice aimed at improving and standardizing the reporting of data on irrigation subsidies.