Dosi C., Easter W. K. (2004).

Cost recovery and water pricing for irrigation and drainage projects. Department of Applied Economics, University of Minnesota.



Water pricing and recovery of the costs of irrigation investment, operation, and maintenance have been contentious issues for many decades. The low  charges for irrigation water are questioned, as well as, the small percentage of farmers who actually pay the charges. In some projects, fee collection rates are near zero, even when water charges are well below the cost of project operation and maintenance (O&M) (Ahmand 2002; Easter 1993; Govt. of  people’s Republic of Bangladesh 2000; Svendsen et al. 1997). This creates serious problems both for irrigation agencies and, in the long run, for farmers. If the fees collected do not cover the costs of an irrigation project, its sustainability, without continued government subsidies, may be at risk.