Green vs Modernity and Community Governance: Water Allocation and Reservoir-Based Agriculture in Village Irrigation Systems of Sri Lanka

Abstract

"Traditional agriculture in many parts of the world has ensured the sustainability of subsistence economies and its non-commodity contribution has secured environmental sustainability. For example in Sri Lanka, village irrigation systems (VISs) have been managed by the village community. As a result of unplanned modernisation of rural agriculture, integrated sustainable farming systems have collapsed and also weakened community governance. Therefore, existing allocation mechanism for reservoir water fails to achieve the maximum social benefits. This paper examines the challenges of community governance in order to re-establish green reservoir-based agricultural production in VISs within the framework of a market economy. This paper analyses the issue of water allocation by using primary data collected from of 460 rice farmers and 325 fish farming groups in two administrative districts in Sri Lanka. Technical efficiency estimates are undertaken for both rice farming and culture-based fisheries (CBF) production. The equi-marginal principle is applied for the allocation of water. Welfare benefits of water re-allocation are measured through consumer surplus estimation. The results show that the estimated mean technical efficiencies (TE) for rice farming and CBF production are 72% and 33% respectively. The most influential factors of TE of rice farming are membership of Farmer Organisations (FOs) and the participatory rate in collective actions organised by FOs. Removing subsidies, improving consultation with extension officials and water user rights were found to be key actions that could improve TE of CBF production. We suggest that integrated forestry, animal husbandry, fishery and rice farming in VISs, no doubt will enhance farmer incomes and community welfare within a market economy framework. With application of co-management of water and a community transferable quota system for CBF development, there is potential for a threefold increase in marginal value product of total reservoir water, while allowing market forces to guide the efficient re-allocation decisions."