PRICING IRRIGATION WATER OF THE ORANGE CROP
Abstract: The research targeted pricing irrigation water of the orange crop as one of the most important fruit crops through several alternatives including a gradual rise in the price of a cubic meter of water for irrigation beginning from 5 piasters/m3 to 50 piasters/m3. The PAM indicated that the value of each of the Nominal Protection Coefficient of feddan return, the Nominal Protection Coefficient of production requirements and Effective Protection Coefficient did not change when pricing a cubic meter of irrigation water in different levels under the study where the value of each reached 0.35, 0.88, 0.34, respectively. While coefficient of the local resources cost only changed under levels of pricing cubic meter of irrigation water used in planting the orange crop where the coefficient of the cost of local resources reached 0.12. In case of non-pricing irrigation water the coefficient of the cost of local resources increased to 0.16 when pricing cubic meter of irrigation water by 50 piasters/m3. So, the implied taxes imposed on producers in favor of consumers remain constant when pricing irrigation water. On the other side, the comparative advantage of the crop gradually decreases by rising pricing the cubic meter of irrigation water. Although pricing the cubic meter used in irrigating orange crop at 50 piasters/m3 Egypt still has the ability to retain the relative advantage in producing the crop as well as achieving the producers high profits from the crop estimated by 958 pounds per month.
The study recommends developing pricing policy aims to rationalize the consumption of irrigation water used in cultivating orange crop not more than 30 piasters per cubic meter which achieves an annual revenue for The State amounts to 606.9 million
pounds and can be used in cultivating new lands and developing irrigation networks.
Publication year 2014
Pages 329 -318
Organization Name
Author(s) from ARC
Publication Type Journal
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