Evaluating Equity and Governance Gaps in Distribution of Micro-Irrigation Technology Subsidy: Evidence from Palnadu District, Andhra Pradesh

Abstract

Context: Demand for micro-irrigation (MI) technologies has increased in semi-arid agricultural areas due to water scarcity, but the spread of such technologies promoted through government subsidy schemes has often been compromised by poor governance and elite capture, with the most vulnerable farmers failing to benefit.
Objectives: This paper examines awareness levels, identification of beneficiaries, impact on use and the estimation of leakages among state government-subsidized Micro-Irrigation System (MIS) schemes in Palnadu District of Andhra Pradesh, India.
Methods: The primary data were collected from 145 farmers belonging to 4 villages in Macherla mandal through a structured schedule and the data was analysed with the help of χ2 tests.
Key Results: However, 60.42% of applications were approved, and implementation was highly unequal. Delays in subsidies were reported in 46.55% of the cases, field verification was insufficient in 66.21%, and elite capture was noted in 50.34% of the recipients. Tenant farmers were excluded at a rate of 54.48%, and collusion between contractors, government officials and beneficiaries was found in 64.14% of cases. Education was a significant predictor of scheme awareness (χ² (df) =11.24, p=0.024), and self-exclusion — rather than formal discrimination on the basis of land size — was one of the major barriers to access. Among the respondents who actually benefited (n = 26), a total of 89.66% reported water savings of 30–50%.
Implications: To promote more equitable irrigation development there is a need for direct and transparent beneficiary selection, strong field monitoring, affirmative action for small and marginal farmers and protection of scheme administration from political interference.