The Relative Efficiency of Water Use in Bangladesh Agriculture

Nasima Tanveer Chowdhury

No 49, Working papers from The South Asian Network for Development and Environmental Economics

Abstract: This study examines the marginal productivity of water and other inputs in dry season rice production in Bangladesh. Agriculture is the major water using sector in Bangladesh, but water is in shortsupply during the dry winter months. The study aims to understand how efficiently irrigated water is used in dry rice production. It estimates a translog production function for boro rice in seven hydrological regions and derives the marginal products of various inputs. These estimates are based on data collected by the International Rice Research Institute from a nationally representative sample of farm households in Bangladesh. The findings suggest that irrigation water is quite inefficiently used in Bangladesh agriculture, particularly in comparison with other outputs. Various policies are recommended for increasing water use efficiency.Key Words: Relative efficiency, Marginal product, Production function, Irrigation water, Boro rice, Bangladesh agriculture.JEL Classification: Q13, Q25

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