Assessment of transaction costs in farmer's managed irrigation system in Nepal

Abstract

The paper attempts to estimate the transaction cost and compare it with production cost and value of output of crops. It also attempts to analyze the factors influencing the transaction cost. For this information was collected from field survey of 60 irrigation systems covering 360 households. The findings of the study show that the main element of transaction time is watching, waiting and negotiating time and which constitute more than 92 percent of the total transaction time. The study also shows that the transaction time is relatively low for Farmers Managed Irrigation System (FMIS) in Nepal. The transaction time is about 5 % to that of total time required for the production of crops. The transaction time is high for the households cultivating the land at downstream of the canal compared to the households cultivating the land at upstream of the canal. In terms of crops transaction time for the cultivation of winter crops is three times higher than that of the summer crop.

Key Words: System; Households; Transaction cost; Repair and maintenance cost; Institution; Farm location; Kathmandu valley

Economic Journal of Development Issues

Vol. 11 & 12 No. 1-2 (2010) Combined Issue

Page: 112-123

Uploaded date: 10 April, 2012