IMPACT OF INCREASED ENERGY PRICE ON SHALLOW TUBEWELL BUSINESS IN TANGAIL DISTRICT OF BANGLADESH

F. Nargis, R.H. Sarwer and T.H. Miah

Bangladesh Journal of Agricultural Economics, 2009, vol. 32, issue 01-2, 13

Abstract: This study evaluated the impact of increased energy price on income of shallow tubewell (STW) owners under diesel and electrically operated STWs. Five adjacent villages of Ghatail Upazila in Tangail district were purposively selected. In total, 30 STW owners were randomly selected from these villages. Both diesel operated shallow tubewell (DOSTW) and electricity operated shallow tubewell (EOSTW) business were found profitable in current energy prices. The profit from MV Boro paddy production under EOSTW was relatively higher than the DOSTW due to lower operation and maintenance (0 & M) cost of EOSTW. The DOSTW owners were anxious about increased price of diesel over time. The trend of increasing diesel price hike would possibly break the existing irrigation market in Bangladesh. A stable energy price is essential to protect the irrigation water market, more particularly DOSTW. A reasonable scope apparently exists in the study areas for the expansion of STWs to increase productivity of MV Boro paddy and farm income of the STW owners. Hence, investment in this business can go ahead elsewhere in Bangladesh where topographical and ecological environments are similar to those of the study areas. Since the EOSTW business was more profitable than the DOSTW, the expansion of electricity supply to this business would be positive way to increase the food production resulting ultimate food security of farm households. It is also necessary to take steps for stabilizing diesel price for the interest of the majority of MV Boro paddy producers mainly depend on DOSTWs.

Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:ags:bdbjaf:200117

DOI: 10.22004/ag.econ.200117

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