ASSESSMENT OF TRANSACTION COST IN FUNCTIONING OF WATER USER COOPERATIVE SOCIETIES IN TUNGABHADRA COMMAND AREA OF KARNATAKA

B. GURURAJ¹*, G.S. MAHADEVAIAH^2
1Department of Agricultural Economics, University of Agricultural Sciences, Bengaluru, 560065, Karnataka, India
²Department of Agricultural Economics, University of Agricultural Sciences, Bengaluru, 560065, Karnataka, India
* Corresponding Author : vurguru026@gmail.com

Received : 27-07-2018     Accepted : 11-08-2018     Published : 15-08-2018
Volume : 10     Issue : 15       Pages : 6863 - 6865
Int J Agr Sci 10.15 (2018):6863-6865

Keywords : command area, WUCS, tail-end, transaction cost, enforcement cost
Conflict of Interest : None declared
Acknowledgements/Funding : Author thankful to Secretary and president of Water user cooperative societies in TBP command area. Author also thankful to Department of Agricultural Economics, University of Agricultural Sciences, Bengaluru, 560065, Karnataka, India
Author Contribution : All author equally contributed

In India Irrigated area particularly from canal command area has been considered as development of rural economy, poverty reduction. However, due to intensive cultivation of rice and poor maintenance of canal irrigation system which led to deprivation in the flow of canal water irrigation in the tail end reach farmers and also poor recovery of water cess. The GoI, formed Participatory Irrigation Management (PIM) involves farmers in planning, operation and maintenance of the canal irrigation system and it collects water cess and ensures equity in distribution of water among head and tail reach farmers. The PIM were brought under the ambit of Cooperative Act, which are called as Water User Cooperative Societies (WUCS).The present study undertaken in the Tungabhadra command area of Karnataka with main objective of assessing the transaction cost incurred in functioning of WUCS. The findings indicated that information cost is least proportional of transaction cost in the better performing (BP) WUCS as compared to moderately performing (MP) WUCS. While enforcement cost with regard to supervision and maintenance of field channels (24.64 %) forms major proportion of transaction cost in the BP as compared to MP region (14 %) of WUCS. The transaction cost per member and per acre of paddy lower in BP as compared to MP. The farmer in the moderately performing WUCS may be educated and motivated them to enrol as members and encourage them to participate in general body meeting which helps them to reduce the transaction cost and funds raised from membership fee could be used in operation and maintaining the canal irrigation system thereby helps to reduce seepage and deprivation in flow of canal water to tail end farmers in the command area.

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