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Economic and financial aspects of multiple uses system
Mary Renwick
Multiple Uses Discussion Forum
Economic values and decision making
Drinking
Home Gardens
Enterprises Fisheries
Livestock
Irrigation
Domestic
Water
$
Valuing Multiple Uses of Irrigation Water: Sri Lanka
Uda Walawe
• Background
• Poor Performance
• Valuation work
Univ. of Minnesota & IWMI
ResultsIrrigated Crops $25m/yr
• Paddy $8.1 m• OFCs $3.5 m• Bananas $13.5 m
Home Gardens $8m
• Home $2.03m• Marketed $5.97m [insert pic]
Results
Domestic Use $140,000/yr
Fisheries$743,000/yr
• Home $64,000• Marketed $679,000
– Fishers $390,000– Sellers $289,000
Rice
OFCs
banana
Home gardens
Drinking
Fisheries
`
Value in Alternative Uses
Type of Use Value
US$ m
health nutrition gender
Irrigated crops
24.9 ?
Home gardens
8.0
Drinking 0.1
Fisheries 0.7 ?
Total 33.8
Banana
OFCs
Rice
Market-led Approach to MUS: SIMI*
• Background
• Micro-scale MUS
• Market-led approach
MUS Development• Domestic & Irrigation
– Surplus water for irrigation• 28 community systems• 1,000 households
• Cost – $100 (tap)– $10-$35 (irrigation equip)
• Benefit– Income >$200/yr – Health & nutrition
MUS with dual tap for drip irrigation and domestic use.
Low cost water storage tank for an MUS scheme.
How it Works … The Value Chain
• Input Supplier
• Producer
• Output Markets
Supply-chain development: A key supporting investment for MUS
Appropriate inputs for agriculture, drinking water
(and sanitation)
Embedded services
Results:
• 240 agrovets
• 5 tap/micro irrigation manufactures
• 2 drip assemblers
• 133 micro-irrigation dealers
• 7 extension services (7 districts)
• Sales of 26,230 micro-irrigation systems
Note: Only 1,280 purchased via micro-credit
Producer
• Build capacity of early adopters
• Facilitating access to inputs and credit
• Education
Results:
• 31,000 households (200,000 people) in 1500 farmer groups
• $7.3 million in increased incomes (BCA 3:1)
• Year 1: $100/hh for 16,000 households
• Year 2: $195/hh for 26,000 households
Market development: Critical for economic opportunities linked to MUS
Results:
• 43 market collection centers
• Established value chains across 9 districts serving 3 million
Government: key role• Strategic investments
• Focus on market failures
Conclusions • Economic valuation of alternative uses can
serve as a decision making tool
• Opportunity cost of non-integrated management can be high
• Linking value chain approach to MUS can increase economic returns and reduce subsidies
Questions?