Poor smallholder farmers are generally slow in adopting new technologies especially when such decisions require relatively large initial investments which only yields return over long period of time. Even when subsidies are made available , the high transaction costs act as a hindrance. After more than three decades of promotion by government and despite subsidies as high as 90% conventional drip irrigation technology remains exclusively popular amongst 'gentlemen' (better-off) farmers in India. Since it was first introduced in the 1970s the total area under drip irrigation expanded sluggishly from 1,500 ha in 1985 to 225,000 ha in 1998, which is tiny compared to an estimated national potential of 10.5 million hectares.
IDE, India (IDEI) is an NGO dedicated to troubleshooting such problems through a unique market development approach. IDEI promotes simple, affordable, appropriate and environmentally sound technologies for poor smallholder farmers through private marketing channels, under the brand name Krishak Bandhu. Donor resources are accessed by IDEI to stimulate markets by creating demand for such technologies and by ensuring an efficient supply chain for the equipment. The key to the IDEI approach lies in its adoption and application of commercial business principles as well as in its path of socio-economic development as a tool to sustainability of programmes. IDEI seeks to create a strong and continuing demand by motivating and nurturing an effective supply chain (Including manufacturers, dealers and assemblers of micro irrigation equipment). In west nimar Madhya Pradesh (as in the whole india) IDEI supports the marketing of cheap good quality equipment for so-called 'Affordable Micro-Irrigation Technologies'. The promoted technology in this case is based on a farmer's innovation, which then was promoted and spread by IDEI. IDEI has intervened in four major ways:
- Technically it has further developed the local innovation
- It has promoted small manufacturers of drip irrigation equipment and associated them with brand name
- It has trained and supported private sector service providers to assist farmers to install and adopt the systems
- On an ad hoc basis, IDEI commissions and supports studies on uptake and impact.
