Like the energy sector in the country, Punjab’s irrigation system is also facing similar challenges of low-recovery and high-operational and establishment costs. The province is recovering slightly over 77 per cent through water cess (Abiana) against the total distribution cost that makes irrigation system unsustainable.
The research suggests that though, irrigated agriculture in the country is potentially cost-effective, but the establishment cost of the system is relatively higher that shows the inefficiency of the managerial system. Figures indicate that the establishment cost is even higher than operation and maintenance (O&M) cost. Only 35.20 per cent is being spent on the O&M, while the rest is being eaten away by the establishment.
A research jointly conducted by two universities, Al Qassim University, Saudi Arabia and University of Engineering and Technology, Taxila, evaluates the cost of water paid by farmers, the irrigation benefits per unit water volume, operation and maintenance cost and total production cost, including the cost of irrigation, seed, fertiliser, pesticide, labour, etc.
Available data shows that 80 per cent of food in Pakistan is produced through irrigated agriculture, while in China and India, it is 70 per cent and 50 per cent, respectively. Research points out that the performance of irrigation systems has a major role in producing more food and making irrigated agriculture cost-effective, but the present management cannot provide food security in the region. Improvements in institutional organisation and involvement of stakeholders can improve the situation, study underscores.
It further suggests that there is a dire need for increasing productivity of the already cultivated land and cropping intensity by improved water management measures. Data shows that the total recovery cost of the system as a whole is 77 per cent that means the system bears a loss of about 33 per cent. It observes that the distribution cost constitutes a greater share of the establishment cost as compared to O&M. Research recommends improvements in recovery are required to make the system self-sustainable.
Research further points out that despite various government interventions, including institutional reforms, establishment of Provincial Irrigation and Drainage Authorities (PIDAs), Area Water Boards (AWBs) and farmer organisations, to improve the overall governance in the water sector, real situation has never improved.
It underlines that there are major problems in water cess recovery, unnecessarily high cost of establishment and relatively lower crop yields in comparison of other countries. Farmers at tail ends always complain about short irrigation supply.
Research indicates that though, irrigation in Punjab is profitable and its profitability may further be increased by decreasing on-farm irrigation cost. It suggests that in order to make the irrigation system more reliable and beneficial, it is necessary to decrease the establishment cost. The Irrigation Department is over-staffed and needs right-sizing. Corruption, political interference and social problems are the main hindrances, which need to be addressed seriously.