Abstract:
Economic valuation of irrigation water is one of most critical water governance issues in Pakistan. In the agriculture-dominant province of Punjab, low irrigation water charging rates lead to its ineficient use by farmers. Under the rapidly increasing water scarcity and climate change issues, it is inevitable to assess the actual economic value of canal irrigation water in Punjab.This study applied the Residual Valuation Method to assess the real economic value of canal irrigation water of four major crops (wheat, rice, cotton and sugarcane) in Punjab. The study found that the average economic values of wheat, rice, cotton, and sugarcane crops are PKR 2.6/m3, PKR 2.4/m3, PKR 2.4/m3, and PKR 3.0/m3, respectively. These values are substantially higher than the current flat-rate canal irrigation water charging rates in Punjab. The research further indicated the need to enhance canal water charging rates to ensure its eficient use and sustainable management. The study also observed that any increase in irrigation water charge rate by the government has to be linked with farmers' overall economic returns from crop production along with ensured irrigation supply and reliable service delivery.
Page(s):
1352-1360
DOI:
DOI not available
Published:
Journal: Sarhad Journal of Agriculture, Volume: 38, Issue: 4, Year: 2022
Keywords:
Irrigation
,
Abiana
,
Water pricing
,
Residual valuation method
,
Economic valuation