Annexure-3 (2 Pages)
Annexure 17: Sensitivity analysis of DOS at 20 percent increases of diesel price and 20 percent increases of benefit
Year Investment cost (Tk.)
O&M cost (Tk.)
Total cost (Tk.)
Benefit (Tk.)
Incremental benefit (Tk.)
DF at 10%
Cost at 10%
df
Benefit at 10% df
1 27395 90416 117811 113432 -4379 0.909 107090 103110
2 90416 90416 113432 23016 0.826 74684 93695
3 90416 90416 113432 23016 0.751 67902 85188
4 90416 90416 113432 23016 0.683 61754 77474
5 90416 90416 113432 23016 0.621 56148 70442
6 2500 90416 92916 113432 20516 0.564 52405 63976
7 90416 90416 113432 23016 0.513 46383 58191
8 90416 90416 113432 23016 0.467 42224 52973
9 90416 90416 113432 23016 0.424 38336 48095
10 90416 90416 121352 30936 0.386 34901 46842
Total 581828 699986
154 Annexure 18: CASE STUDY
Case-1: A case study of STW Irrigation Business Management System
Mr. Md. Mortuz Ali Munshi and Mr. Md. Abdul Barek are a electricity operated Shallow Tube Well (EOS) irrigation business partner in Kurmushi mauza. Mr. Mortuz is treated as the main actor because of his greater control over the business. He has 12 years of schooling;
where as Mr. Barek can write his name only. Moreover, Mr. Mortuz has higher social status compared to Mr. Barek. Mr. Mortuz has also larger portion of command area than his partner.
Previously they had two separate diesel engines. Historical backgrounds of these two partners are interesting and important one in management aspects.
Mr. Mortuz started his career as a teacher of a high school at Hamidpur Bazar in 1997. Three years later he resigned his job due to a misunderstanding with managing committee of that school. Thereafter in 1990 he worked as a broker or agent of mustard oil mills in Tangail district (30 km distance from his residence). Mr. Mortuz also got involved with rice mills as a commission agent during 1995. At the same time he was also involved with diesel operated STW business along with his younger brother. He inherited this STW irrigation business from his parents. Since Mr. Mortuz was involved with many other businesses, he left STW irrigation business to his younger brother Mr. Abdus Salam who started to run STW business alone in 2000. After 6 years Mr. Mortuz again returned and started STW business in his previous command area with his younger brother in 2006 and he again left his younger brother from the STW business in 2009. Finally Mr. Mortuz took Mr. Barek as a partner and jointly started EOS irrigation business in 2010. They managed electricity connection for their STW in the same year.
Here one thing is important to mention that, the first initiative for changing diesel engine to EOS came from Mr. Mortuz. Mr. Mortuz and Mr. Barek decided to run STW business jointly for coping with rising diesel price and also to increase command areas from single management to partnership/joint management. The idea first came to Mortuz as “if we connect with electricity we will be able to irrigate both command areas by bearing relatively same operation and maintenance cost”. Then they made contact with a middleman (Mr.
Abdus Satter) who worked as a contractor for connecting STW with electricity. They have paid Tk. 20000 as connection charge. They purchased electric motor (Tk. 10000) with the help of Mr. Masud Khan, who is an electrical mechanics and has a repairing shop at
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Hamidpur Bazar of Ghatail Upazila. Finally they invested Tk 40000 for their electric operated STW to meet all expenses.
Each partner paid Tk. 20000 as investment cost. Mr. Mortuz financed himself from his regular income from vegetables and mustard. He did not sell his diesel engine as safeguard (against irregular electricity supply) and the STW was also used for irrigating vegetables plots during Boro crop seasons. On the other hand, Mr. Barek managed the investment cost by mortgaging out his land (Tk. 5000), selling diesel engine (Tk.9000) and the rest Tk. 6000 from family income. Actually, Mr. Barek has very little land in his command area
Last year (2016), they irrigated about 9.37 acres of land. This command area was formed by accumulating land from Mr. Mortuz (4.87 acres), Mr. Barek (3.6 acres) and Mr. Golap (0.9 acre). Mainly water buyers came from two command areas of the two STW partners (Mr.
Mortuz and Mr. Barek). In addition a few irrigators came from another DOS (Mr. Golap) command area. Mr. Mortuz’s command area consisted of land from patriarchal and matriarchal relations. He accumulated 2.17 acres of land from patriarchal relations and 2.4 acres from matriarchal relations. Moreover, another 0.3 acre of land accumulated from neighbour Ensun Talukder who lived in Kaijalipur village. Here, one thing is very interesting that most of command areas’ land were accumulated from matriarchal side.
Though Mr. Barek have no own land in the command area, he accumulated 3.6 acres of land from his neighbour and relatives as 0.3 acre from cousin Johir uddin, 0.4 acre from his uncle Bisha, 0.5 acre from his uncle Moniruddin, and the rest amount of land from his ex-villagers of Kajalipur.
During the last Boro season (2016), they (Mr. Mortuz and Mr. Barek) operated their STW themselves by rotation without employing any driver (manager/operator). They operated STW in a weekly basis. Mr. Mortuz’s son helped him when required and Mr. Barek himself performed the driving task. Their STW motor perfectly operated in last season without any technical difficulties. Again they did not invest any additional money because they paid electric bill after getting returns. They maintained proper rotation in irrigating all plots without any biasness because of crop sharing system as irrigation charge. Moreover, Mr.
Mortuz took the opportunity of non-metering system because he suppressed the actual command area to electric office for paying less amount of electric bill (Tk. 20000 as electric
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bills). However, the total investment cost of their business was Tk. 40000 and operation &
maintenance cost was Tk. 21500. The Table 1 below reveals that they received Tk. 28515 as Gross Margin for each from the last Boro season. The partner who worked as manager was also paid the same rate. In case of larger command area, most of the partners tried to employ himself or his family members as a manager to earn some salary and also to establish control over the STW irrigation business.
Table 1: Cost and return of Mr. Mortuz and Mr. Barek STW irrigation business in 2016.
Item Tk. US$
Maintenance cost [Electric bill Tk. 20000,
Channel repairing Tk. 1500] 21500 276
Interest on Operating capital @ 10 % 1075 14
Total 22575 289
Paddy (1/4 share), [37 quintals@Tk. 1892] 70004 897
By products (Straw) 9600 123
Total return 79604 1021
Gross margin/STW 57029 731
Gross margin/partner 28515 366
*Taka 78= US$ 1.0
Some observations were made from the field investigation:
1) In kurmushi mauza (Madha para), Hazi gusthi (lineage) were dominated class and Mortuz’
father from Munshi gusthi got marriage with Hazi gusthi. Hazi gusthi possesses most of the land in those areas. Munshi gusthi were also influential gusthi particularly due to religious practitioner. After building new marital relationship both gusthis (Hazi and Munshi) acquired higher power and status in the social system. Still they have been continuing their marital relationship among the two gusthi. Mortuz and his elder brother Malek both got marriage with Hazi gusthi (Mr. Mortuz married with daughter of Mr. Mokbul Master and Mr. Malek married with daughter of Mr. Ahmed Ali). Through this endogamous marital relationship, Mortuz accumulated larger command area from his matriarchal relations.
2) Ensun Talukder having 0.3 acre of land tried to change command area by capturing land from Mortuz STW to Nazimuddin STW due to some misunderstanding. Moreover,
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Nazimuddin came from same village of Ensun Talukder. But Nazimuddin did not agree to irrigate the land of Ensun Talukder due to established social norms and also higher social position of Mortuz. Finally, Ensun Talukder was bound to continue his Boro cultivation by irrigating his plots from Mortuz’s STW, although he belonged to powerful gusthi (Talukder) in his own village of Kaijalipur.