Study of irrigation water pricing method based on service approach

Abstract

    Irrigation service pricing has been receiving much attention from state management agencies and researchers, especially in the context of implementing the Law on Hydraulic Works. Although irrigation water pricing method has been regulated by the State, its implementation and efficiency for different types of irrigation systems are themes of discussion. This paper presents method for determining irrigation water prices based on a service approach and uses two-component water pricing to calculate irrigation water prices for the study case of pump irrigation system of Thanh Nghia cooperative. The research results indicated that irrigation service prices depend remarkly on the level of service provided. An adjustment of pump head and selection of pumping time are two key factors affecting the cost of irrigation system, and therefore, the irrigation service prices. The results showed that the variable cost of the irrigaiton system would decrease about 75% in a possible case for choosing by the farmers. The application of service-based approach and  twocomponent water pricing is able to change the behavior of supplier and water users towards achieving efficiency in irrigated agricultural production. This study provides lessons learnt for implementation and replication of the new irrigation water pricing method for various irrigation systems nationwide in the future