Policy Briefings. Water for Balochistan. Assessment and Recovery of Abiana in the Indus Basin Canal System of Balochistan A Way Forward

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1 Assessment and Recovery of Abiana in the Indus Basin Canal System of Balochistan A Way Forward Dr. Shahid Ahmad 1. Canal Network of Balochistan The geographic distribution of the canal command area of the Kachhi canal is given in Table 2. Table 2. District-wise command area of Kachhi canal. District Command Area (acres) Dera Bugti 1,00,200 Nasirabad 2,77,900 Bolan 1,27,400 Jhal Magsi 2,07,500 Total 7,13,000 Source: IPD, Balochistan. There are two major canal networks in the Indus basin canal system of Balochistan (Figure 1). First network includes Pat Feeder Canal system, Uch canal and Manuthi canal covering the canal command area of around million acres, representing 67% of the total canal command area in Balochistan. Second network includes the Khirther canal, Rabi channel of Khirther canal and Escape channel of Khirther canal covering an area of million acres. These two systems cover 96.7 % of total canal command area of million acres in Balochistan (Table 1). Table 1. Salient features of the Indus Basin canal networks of Balochistan Canal System Designed Discharge (cusecs) Length (kms) CCA (acres) Pat Feeder Canal ,425 Rabi Channel of Pat ,000 Feeder Khirther Canal ,000 Rabi Channel of Khirther ,000 Escape Channel of ,000 Khirther Uch Canal ,876 Manuthi Canal ,671 Khan Wah ,000 Zeb Wah ,000 Total Current Area 9,01,972 Extension of Pat Feeder ,000 Total 10,60,972 Source: Irrigation and Power Department (IPD), Balochistan. The construction of Kachhi canal is in progress. It is designed for a discharge of 6,000 cusecs to provide total water supply of MAF ( MAF as perennial flows and 1.57 MAF as non-perennial flood flows) per annum. Its command area is around million acres with a design cropping intensity of 80.4%. After commissioning of the Pat Feeder Extension and the Kachhi canal, the current canal command area would increase by about 97%. Figure 1. Canal and drainage network of Balochistan. 2. Abiana System in Balochistan The canal irrigated agriculture in the province of Balochistan was introduced by the British government, after commissioning of the Khirther canal. They also notified the Abiana rates to be charged from the farmers for the supply of canal water on the basis of irrigated cropped area. The Abiana rates were estimated, keeping in view the water required by the crop, crop growing season length and its priority for the farming community. The Abiana rates were purposely kept low to encourage: a) colonization; and b) improvement of socio-economic conditions of the rural communities. These rates were initially different for different canal systems in the country and in Balcohistan. 1

2 After independence the same system of assessment & collection of Abiana continued. Initially, the total recovery was sufficient to cover the cost of salaries of the staff and the O&M expenditures. The type of crop and area sown under each crop are assessed by the Revenue Department for the Pat Feeder canal and jointly by the Revenue and Irrigation and Power Departments (IPD) for the Khirther canal. The collection and recovery of Abiana in all the canal commands of Balochistan is the responsibility of the staff of the Revenue Department. The Balochistan Government is still in the phase of irrigation infrastructure development and both the major canal networks are either in the remodeling phase or extension is being made i.e. the Pat Feeder canal network. The Kachhi canal is now in the construction phase. Even after the construction of Kachhi canal, there will be some additional water resources available to Balochistan for further construction of new canals. Out of the total perennial flows available to Balochistan as per Water Accord of 4.23 MAF, around MAF will be utilized after the completion of the Patfeeder Extension and Kachhi canal. Out of 4.62 MAF of flood supplies available to Balochistan, only 1.57 MAF will be utilized by the Kachhi canal. Thus, there is an opportunity to impose more efficient and effective methods of Abiana atleast in the new canal systems (Pat Feeder Extension, Kachhi canal and others). 3. Assessment of Abiana in Balochistan The Indus basin canal command area in Balochistan is around million acres. The analysis of assessment of Abiana for the Pat Feeder and Khirther canals revealed that assessment during was Rs and Rs millions, respectively, totaling to Rs millions (Table 3). Considering the canal irrigated area of Balochistan of million acres under rice-wheat cropping pattern having the lowest Abiana rates (Rs and Rs per acre for rice and wheat, respectively) with average annual cropping intensity of 100%, the potential Abiana assessment comes to Rs millions for The actual assessment of Rs millions during was around 37.9% of potential assessment, indicating a possibility of doubling or tripling the assessment within the existing Abiana rates. Table 3. Assessment and recovery of annual Abiana for Pat Feeder and Khirther Canals Canal Commands Year Recovery Pat Feeder Canal Khirther Canal Annual Assessed Abiana (Rs. in millions) Annual* Recovery (Rs. in millions) (%) Source: IPD, Balochistan, Revenue Department, Although, the assessment of Abiana in the Pat Feeder canal is made by the Revenue staff, the IPD also makes its own assessment. There is a difference in assessment by the two departments, as the IPD has raised an issue that assessment for the year was Rs. 75 millions less than the assessment made by the Revenue staff (Rs millions). The IPD assessment of Abiana for the year was Rs millions. The estimated potential assessment made under this study is around Rs millions, which is close to the IPD assessment of Rs millions. This shows that the assessment of Abiana can be easily doubled and with some additional efforts it can also be tripled. The Abiana assessment for the Khirther canal is made jointly by the IPD and the Revenue Department. Apparently, there are no issues regarding assessment between the two departments. The Punjab government was also stuck in a similar problem, where expenditure on assessment and collection of Abiana was considerable (around 46% of the assessed value of Abiana) in relation to the amount of Abiana. Taking into consideration of these factors, the Punjab government has introduced a system of flat rates of Abiana based on the CCA. This has not only reduced the expenditure on assessment but also created conducive environment where farmers have started implementing judicious use of water by increasing the cropping intensity and water productivity. IPD, Balochistan is also facing difficulty in the assessment of Abiana due to the requirement of staff 2

3 and problems associated with the assessment, which requires physically visiting each and every farm, rather every field. The cost of assessment is also a major factor, which is a burden on both the IPD and Revenue departments. 4. Recovery of Abiana in Balochistan deferred O&M of the irrigation infrastructure, and the province is now forced to have development projects for rehabilitation of irrigation schemes. The continued deferred maintenance would further result into severe deterioration of the irrigation schemes. 100 The recovery of Abiana during was 27% of the assessment in Pat Feeder and Khirther canals. The recovery during and was 16.5 and 10%, respectively (Table 3). The recovery of the assessment year of was actually made during , which can be regarded as an improvement either due to the BRMP conditionality or better performance of the Revenue staff. The BRMP conditionality was to raise Abiana recovery to 40% of the assessed value during Otherwise, there was no improvement in the law and order situation of the Balochistan province. The increase from 10% to 27% is considerable and further improvement in the recovery of Abiana is possible. During 80s and early 90s, the recovery was relatively better. It was close to 90% during 80s (Figures 2 and 3). Abiana Recovery (%) Pat Feeder Canal System Period (Years) Figure 2. Recovery rate of Abiana in Pat Feeder canal system (Source: IPD, Balochistan 2006). The low recovery is mainly due to the lack of discipline and lawlessness in the system, where Abiana collecting agencies cannot enforce regulations. The assessment and collection of Abiana also has an associated cost (manpower and mobility), which might be more than the present level of recovery of 27%. Thus there is hardly any collection available for the routine O&M in absolute terms. This resulted into Abiana Recovery (%) Khirther Canal System Period (years) Figure 3. Recovery rate of Abiana in Khirther canal system (Source: IPD, Balochistan 2006). The major issues related to Abiana are: low assessment of Abiana, which is around onethird of the potential assessment due to: i. reflection of low Abiana crops in place of high value crops; ii. exemption to the big landowners; iii. concealment of the area cropped. low recovery of assessed Abiana which is only 27%; high cost of Abiana assessment due to enforcement of variable rates based on crops and cropped area. 5. Abiana Rates in the Indus basin The rates of Abiana prevailing in the four provinces were compared in a study conducted under the National Drainage Programme (NDP). The Abiana rates used in this study for the Balochistan province were for the year 1999, which are being raised annually at a rate of 13% since The comparison indicated that largely the Abiana rates prevailing in the province of Balochistan during 1999 were lower than the rates prevailing in NWFP, except the wheat crop. The Abiana rates for fruits and vegetables in the province were also lower than the Sindh province (Table 4). However, the annual increase of 13% per annum in the Abiana rates since 1999 has changed the situation, where the Abiana rates in Balochistan are now either at par or higher than other provinces

4 Table 4. Comparison of Abiana rates of four provinces during 1999 based on the NDP Study Crops Punjab Sindh NWFP Balochistan Range Wheat Rice Cotton Sugarcane Oilseeds 65 75/ / Fodders / Fruits (Kharif) Fruits (Rabi) Kharif Vegetables Rabi Vegetables Abiana rates charged per acre of crop matured in the canal commands of the province are many-folds lower than the cost of pumped water in the valley. The operational energy cost of pumped water is around Rs. 20,000 per acre per year for a farm of around 25 acres. Therefore, the Abiana rates in the province should be seen in the context of both cost and value of water. 6. Abiana Rates in Balochistan The Abiana rates are based on per acre of cropped area and different rates are fixed for various crops ( Table 5). The Abiana rates during for pulses, coarse grain, maize, kharif fodders are lowest of Rs per acre. The rate for Rabi grain crops and fodders is Rs per acre. Rates for cotton and rice are almost same. Abiana rates for sugarcane and fruits are higher because they consume water for whole of the year compared to seasonal use by other crops. The same rate of Abiana for rice and cotton crops is not understandable, because rice consumes many-fold more water compared to cotton. Sugarcane also consumes around 3 times more water than cotton. There is a need to rationalize the Abiana rates based on the amount of water consumed by a crop. The high water delta crops include rice, sugarcane, vegetables, fruits and fodders. However, the experience of Abiana recovery in Balochistan has shown that the increase in Abiana rates did not increased the recovery percentage. Therefore, alternate options need to be developed which can help to increase the recovery and the net income even with reduced rates of Abiana. Cultivation of rice in the canal-irrigated areas is a major cause for the twin menace of waterlogging and salinity, which increased the O&M cost of the irrigation system and productivity has fallen tremendously. According to the World Bank estimates, the loss in production due to waterlogging and salinity in the Indus basin is around 25%. The situation in Balochistan is not better than the average situation in the Indus basin. Table 5. Abiana rates of crops in Pat Feeder and Khirther canal commands in Balochistan. Major Classification Sub-Classification Abiana Rate (Rs./Acre) Rice Rice, Water Lotus, Jute, Tobacco Cotton Cotton Sugarcane Sugarcane Wheat Wheat, Barley, Oats Gardens Garden, Orchards, Banana, Vegetables Misc. Kharif Crops Pulses, Jowar, Bajra, Maize, Fodder, Drugs, Dyes, Melons, Soybeans, Chillies and Summer Oilseeds. Misc. Rabi Crops Oilseeds Winter Crops, Fodders, Rabi Pulses Reclamation During Kharif Season Forest Plantations Local Council Plantations Kharif Local Plantations Rabi Source: IPD, Recently, the Government of Balochistan has assigned high priority for the cultivation of cotton by replacing rice. Water productivity of cotton is much higher due to the ecological and crop characteristics. Increasing Abiana of rice would also help to replace rice with cotton in medium-textured soils. 7. Flat Rate Abiana in Punjab 7.1. Case Study of Punjab A study was carried out by the Department of Irrigation and Power, Punjab to ascertain the views of farmers regarding the enforcement of flat rate of Abiana in the canal commands of Punjab. Sampling was carried out in 17 districts regarding introduction of flat rate of Abiana in Punjab. Around 75% of the respondents were not satisfied with the existing system of assessment of Abiana, demand slips and remission of failed crop. Around 75% of the respondents were ready for the introduction of flat rate of Abiana and 4

5 50% were interested for change in the collection system of Abiana largely due to malpractices by the Patwari (Assessment Person of Irrigation Department). The study has specified that flat rate of Rs. 100/acre/crop may be enforced for Kharif and Rabi crops compared to the current level of Rs. 80 per crop per acre (average rate of the current Abiana for different crops). Higher rates of Abiana have been proposed for farmers having higher water allowance. The study also recommended that the introduction of flat rate shall: save the farmers from the discretion of the Patwaries; shall ensure transparency; provide freedom to the farmers to select crops of their preference; bring large farmers in the Abiana network; PIDA/AWBs, Nehri Panchayat, Khal Panchayat and FOs will be benefited as: a) they will clearly know their farmers, their ownership and the expected revenue; b) leakage of revenue would minimize; and c) Abiana assessment and collection shall improve. Following are the apprehensions raised regarding the introduction of flat rates: farmers will have to pay more water charges than what they were paying with the present system; cropping patterns shall change and farmers shall have no incentives to grow fodders, etc.; irrigators at tail of canals shall suffer from the shortages in spite of payment of Abiana; there shall be no incentive for conjunctive use of water; and farmers shall resort to deficit irrigation, which may raise the salinity level and reduction in yields of crops. The apprehensions documented in the study as farmers apprehensions are not realistic and farmers could have been told regarding the real situation. These apprehensions reflect to some-extent the views of the Department or the Consultant. The comments on these apprehensions are: As the suggested flat rates are not higher than the current rates, thus the apprehension of higher Abiana will be primarily due to under-assessment or concealment of the area in the current system. Livestock is a priority for farmers and farmers are not selecting crops due to Abiana rates, so they will continue to grow fodders based on their priority for livestock. The irrigators at the tail end are victim of in-equity prevailing in the system due to poor performance of the canal system. It is the responsibility of the Department to provide water at the tail ends. The conjunctive water use is due to the shortage of water as canal supplies provide only 50% of the requirement at farm level in Punjab. Farmers do not practice conjunctive use due to Abiana system rather there will be less disagreements on the Abiana assessment, if the rate is fixed on CCA basis. Thus the farmers can use tubewell water the way they like. Secondary salinization is due to the use of poor quality groundwater. Farmers are using poor quality groundwater due to shortage of canal supplies. The Abiana system will not increase the salinity because farmers first preference is to utilize all the available supplies of canal water, which will be continued. The study revealed that introduction of flat rate shall develop a new and transparent culture, where farmers would be aware of their Abiana dues and would be in a better position to priorities the crops to be grown considering the market pull. The apprehensions of the farmers may not be true if proper system of delivery of water is applied. In case of droughts, the farmers shall share shortages with the farmers of other areas and they will also get remission in Abiana Rates as approved by the Government Notification for Enforcement of Flat Rate of Abiana in Punjab The Government of Punjab, Department of Irrigation and Power has enforced a system of flat rate of Abiana in all the canal commands of the Punjab province with effect from October 25 th It is now over two years that the flat rate system is in practice. The personal communications with the Irrigation and Power Department, Punjab revealed that the new system is performing well, and in the LCC-East, some of the FOs have even collected around 99% of the Abiana under the flat rate system. 5

6 The notification of the Punjab province is reproduced as under: NOTIFICATION GOVETNMENT OF THE PUNJAB IRRIGATION AND POWER DEPARTMENT Dated Lahore, the 25 October, 2003 No.SO(REV) I&P/3-98/ In exercise of the powers conferred upon him under Section 75 read with Section 36 of the Canal and Drainage Act (Act VIII of 1873), the Governor of the Punjab is pleased to issue the following Schedule of Occupier Rates on the basis of Flat Rate Assessment of Abiana w.e.f. Kharif No Abiana shall be levied on non-perennial areas for Rabi watering if any. 2. No additional pumping levy / fee shall be charged on Lift Irrigation Schemes and all notifications issued on the subject stand withdrawn. 3. No double Abiana shall be charged on the existing SCARP areas and all notifications issued on the subject stand withdrawn % rebate on installation of already installed private tubewells by any land owner shall continue and shall now be admissible on the basis of enlisted area attached to the tubewell. Table 6. Schedule of Occupier s Rates 1 Item Rate (Rs/acre) Perennial areas forming basis for the Rs. 85/- per acre sanction of the discharge of an outlet Rs. 50/- per acre (CCA) During Kharif During Rabi Non-Perennial areas forming basis Rs. 85/- per acre for the sanction of the discharge of an outlet (CCA) during Kharif only Sanctioned Gardens in Perennial Rs. 250/- per acre per areas crop season Sanctioned Gardens in Non-Perennial Rs. 250/- per acre for areas Kharif only Sugarcane for which extra canal Rs. 250/- per acre per water sanctioned in perennial areas crop season Paddocks in Perennial areas Rs. 170/- per acre per crop season Paddocks in Non-Perennial areas Rs. 170/- per acre for Kharif only Fish Farms of 0.4 cusec supply in Rs. 8500/- per acre Perennial areas per crop season Fish Farms of 0.04 cusec supply in Rs. 850/- per acre per Perennial areas crop season Fish Farms of 0.4 cusec supply in Rs. 8500/- per acre Non-Perennial areas for Kharif only Fish Farms of 0.04 cusec supply in Non-Perennial areas Rs. 850/- per acre for Kharif only 8. Water Cost in Pat Feeder and Khirther Canals Various sectors involved in water use planning or execution include the Departments of Irrigation and Power and Public Health Engineering. Water is primarily used for raising crops but Agriculture Department is not involved in water use related issues at any level. The Planning and Development Department has a key role in the planning, coordination and execution of development schemes but there is hardly any involvement of Agriculture Department even at the planning level. In addition to the non-development expenditure, funds are provided annually to various departments for development projects from the PSDP. The expenditure incurred by concerned departments has decreased significantly in compared to earlier years for all water related sectors. The expenditure on Water decreased from 18.0% in to 15.4% in and then it increased to 17.2% in Similarly, for Agriculture, it decreased from 4.8% to 2.8% and 2.0% of total development budget during and , respectively (Table 7). The expenditure on agriculture sector is continuously decreasing, since the last five years. Table 7. PSDP budget/expenditure of water related sectors in Balochistan Sector * Expenditure incurred Rs. in billions Agriculture Water SAP (PHE) Total PSDP Expenditure as % of total PSDP Agriculture Water SAP (PHE) Total PSDP *Budget Allocation Cost of canal water was computed based on the expenditures incurred only on the concerned field offices of canal irrigation (Table 8); excluding the expenditure of offices of the Department of Irrigation and Power in non-canal command areas and the O&M expenditure required as per yard stick. SECRETARY TO THE GOVT. OF THE PUNJAB IRRIGATION AND POWER DEPARTMENT The expenditures related to the Pat Feeder and Khirther canals network are included in the cost estimates. The cost estimated for water related to 6

7 salaries of the IPD staff involved in canal commands (including cost under items 6, 7 and 8 of Table 8) comes to Rs millions and O&M requirement for the Pat Feeder and Khirther canal systems comes to Rs millions. The O&M requirement for the Pat Feeder canal (Rs millions), for the Khirther canal (Rs millions) and for Drainage Schemes (Rs millions) based on yard stick comes to Rs millions for the year Thus the total O&M expenditure is around Rs millions. The assessment of Abiana for the year comes to Rs millions. Thus the assessed amount of Abiana during the year is about 20% of the expenditure on the Pat Feeder and Khirther canals. Actual collection of Abiana is however, much less than the assessment. Thus the recovery of Abiana just meets 5.4% of the cost of water (Table 8). Punjab, who has successfully introduced the flat rate of Abiana since October This has increased the recovery and cost of assessment has altogether eliminated. 9. Cost Recovery of Irrigation Infrastructure In the past, there was no policy or criteria for cost recovery, not only for the water related projects but in any of the developmental works executed by other departments as well. Recoveries are made in the form of water rate from area irrigated by canals (Pat Feeder/ Khirther) and from the users of drinking water. The level of recoveries is hardly sufficient to cover the O&M expenses. Since the O&M of Minor Perennial Irrigation Schemes is the responsibility of farmers, the department does not make any recoveries from the water users of these schemes. Table 8. Expenditure of the Department of Irrigation and Power, Balochistan. No. Detailed function Summary Administration Secretariat 1, , Planning Development & Monitoring Directorate H-1 Direction Chief Engineer H-1 Chief Engineer Design Cell H-1 Direction Chief Engineer (North) H-1 Chief Engineer South H-2 Superintendent Engineer H-3 Executive Engineer Canal Irrigation H-3 Executive Engineer Establishment for Canal Division & Sub Division Hub Establishment Charges of Bela Canal H-4 Special Revenue Provision for Works (Non Development) Total 1, , Source: IPD, Balochistan. To meet the cost of water, both the assessment and rates of Abiana have to be increased or appropriate options have to be developed to meet the cost of water. This would require analysis for the introduction of flat rate Abiana system in line with the Government of The capital cost of water for Minor Perennial Irrigation Schemes varies from one area to another. These schemes are operated by the beneficiaries themselves. Out of a total of 350 Minor Irrigation schemes in the province, 40 have been handed over to Farmers Associations. However, the Farmers Associations of some of the schemes are not quite active leading to the neglect of maintenance of the schemes. Similarly, the Karaizes are also maintained by the farmers Issues The IWRM Policy formulated by the Department of Irrigation and Power, Government of Balochistan, recently approved by the Cabinet has identified the following issues related to the cost recovery of irrigation infrastructure. Indus Basin Irrigation System Assessment of Abiana in the Pat Feeder and Khirther canals is almost one-third of the potential assessment. Under assessment is a common phenomenon in the IBIS. Recovery of Abiana was around 10% of the assessed value during , which is due to lawlessness, indiscipline and rent-seeking behaviour prevailing in the system. Abiana rates are irrespective of the amount of water consumed by different crops i.e. same Abiana is charged for rice and cotton crops, where rice crop consumes many-fold more water than cotton. 7

8 Cost of Abiana assessment and collection is higher than the current level of recovery. Minor Perennial Irrigation Schemes The minor perennial irrigation schemes were transferred to communities without imparting appropriate training to equip the Water Users Associations to collect the Abiana and its use for the O&M of the schemes. The mechanisms for distribution of Abiana between the IPD and the WUAs are also not in place. attention of the IPD towards meeting gap between the revenue and the expenditure. The reduced revenue in the last decade was due to: a) poor maintenance of the system resulting in low efficiency and less delivery of water at the farm gate; b) under-assessment of Abiana; and c) extremely low recovery of Abiana. The Government of Balochistan is also considering simplifying the rules, procedures, and methods of recovery of Abiana from the farmers. The improvement of the system of Abiana had been under consideration for the last few years and following options were considered: 9.2. Policy The IWRM Policy formulated by the Department of Irrigation and Power, Government of Balochistan, identified the following policy and reforms related to the cost recovery of irrigation infrastructure. Indus Basin Canal Commands Develop and enforce a strategy for assessment and recovery of Abiana during by increasing it from 10% to 30%. Subsequent increase would be made to achieve level of over 70% in a period of 3 years. Undertake a study for Rationalizing Abiana rates and to increase recovery in the Indus basin canal commands. Minor Irrigation Schemes Encourage Water Users Associations to enforce flat rates of Abiana in minor perennial irrigation schemes to avoid additional cost in assessment of Abiana. Authorize Water Users Associations to collect Abiana and use it for day-to-day maintenance and for future investments in schemes, which have not been transferred. 10. Introducing Flat Rate of Abiana in Balochistan Deficit Management The IPD, Balochistan is considering ways to close the gap between income and expenditure by increasing the rate of Abiana since 1999, control on its expenses, and managing the available manpower resources. The World Bank and other donors have been drawing the Reduction in the number of items in the list of Abiana rates and adoption of a uniform rate of Abiana for all the canals. Joint assessment of Abiana by the IPD and the Revenue Department is needed to overcome the issues due to variations of assessment by the two departments i.e. Pat Feeder canal. Simplification of assessment procedure and collection system Source of Income The recovery from Abiana under the Pat Feeder and Khirther canal systems in Balochistan during is given in Table 9. Table 9. Recovery of Abiana from Pat Feeder and Khirther canals Recovery of Abiana Amount (Rs. in millions) Pat Feeder Khirther Total Agriculture and livestock production are the two dominant sectors contributing to the Balochistan s economy, accounting for around 52% of the provincial GDP and employing roughly 67% of the labour force. The federal and provincial Governments collect many taxes at wholesale, manufacture and retail level. Major taxes are: a) Income Tax; b) Customs Duty; and c) General Sales Tax. These taxes are leviable on insecticides, pesticides, fertilizer and other products used for agriculture. Similarly, taxes are also collected on the products prepared based on raw materials from agriculture like textile, etc. 8

9 To meet the gap between O&M expenditure and revenues, the government of Balochistan started annual increase of 13% in the Abiana rates. However, this increase in Abiana did not increase the recovery, which is currently around 27% of the assessed Abiana. Therefore, government has to provide funds through diversion from other sectors to meet the gap or it resulted in deferred maintenance of the system Options for Flat Rate of Abiana A number of options are analyzed for the introduction of flat rate Abiana in the canal commands of Balochistan. Flat Rate Abiana at Current Assessment Level Abiana rates to arrive at existing Abiana assessment of Rs million on the basis of CCA, shall be around Rs. 67.0/acre/annum, which is extremely low. Rather it would create a situation where farmers might stop paying the Abiana considering the extreme reduction as a weakness of the government. Flat Rate Abiana at Current Rates Following are the prevailing rates of Abiana for major crops grown in canal commands of Balochistan (Table 10). Table 10. Current rates of Abiana for major crops Seasons Crops Abiana Rate (Rs./acre) Kharif Cotton Rice Miscellaneous Kharif Crops including Fodders Average Rabi Wheat Miscellaneous Rabi Crops including Fodders Average The average flat rate of Rs. 212/acre for the Kharif season and Rs. 146/acre for the Rabi season were used on the basis of the CCA. Using the CCA for both the Pat Feeder and Khirther canals commands, the assessed value of Abiana for the current year is given in Table 11. Table 11. Assessed Abiana based on current rates of Abiana Season CCA Abiana Rate (Rs./acre) Assessed Abiana (Rs. in millions) Kharif Rabi Total Flat Rate Abiana to recover Total O&M Expenditure To recover the total O&M cost of Rs millions, Abiana Rate of Rs /acre/annum shall have to be enforced. The Abiana for Kharif crops may be fixed at Rs. 250/acre and for Rabi crops at Rs /acre on the basis of CCA (Table 12). The current system of Abiana recovery is ineffective as the recovery during the year was hardly 27% of the assessed value of Abiana. Table 12. Assessed Abiana to recover the O&M Expenditure Season CCA Abiana Rate (Rs./acre) Assessd Abiana (Rs. in millions) Kharif Rabi Total Flat Rate Abiana to Recover 50% of the O&M Expenditure The full recovery of O&M in the beginning is not possible. Therefore, it can be introduced in two phases. In the 1 st phase, Abiana rates of Rs. 125/acre and Rs. 75/acre are proposed for the Kharif and Rabi seasons, respectively, based on the CCA. The reduced rate of Abiana and estimated assessment based on the CCA is given in Table 13. Table 13. Assessed Abiana to recover 50% O&M Expenditure Season CCA Abiana Rate (Rs./acre) Assessed Abiana (Rs. in millions) Kharif Rabi Total The proposed assessment of Rs millions is almost five-fold of the assessment of Rs millions. This shows that rate of Abiana can be reduced to develop a more workable option. The rates used for the Kharif and Rabi seasons are almost half of rice and wheat crops. Thus effect of CCA on the increase in Abiana is balanced by assuming 50% cropping intensity both for the Kharif 9

10 and Rabi crops. This is an ideal option to be introduced in the 1 st phase to recover half of the O&M expenditure. In the 2 nd phase the full Abiana rates to recover the O&M cost can be imposed. Abiana in Line with the province of Punjab The flat rates of Abiana introduced in the province of Punjab during 2003 for the Kharif and Rabi seasons crops were used to assess the Abiana for the Pat Feeder and Khirther canal commands (Table 14). Table 14. Assessed Abiana in line with Punjab Season Abiana Rate (Rs./acre) CCA Assessed Abiana (Rs. in millions) Kharif Rabi Total The flat rates of Abiana proposed under this option provide assessment of Rs millions, which is almost equal to one-third of the O&M expenditure in Pat Feeder and Khirther canals. However, it is almost double than the current assessment of Abiana of Rs millions in the Pat Feeder and the Khirther canal commands. 11. Abiana for Minor Irrigation Schemes The government of Balochistan does not recover any of the public investment in the infrastructure of around 422 schemes (335 minor perennial irrigation and 87 flood irrigation). Still large number of schemes is currently the responsibility of the IPD. This practice is typical of the reliance on government, sends the wrong signals to the farmers and reduces their ownership of the schemes. The issue is how to formulate future schemes with active participation of farmers so that planning, appraisal, design and implementation could be done by the Farmers Organizations (FOs), for making them responsible to share the development cost and take over the O&M cost of the schemes. There are around 335 minor perennial irrigation schemes covering an area of 0.20 million acres in Balochistan that would benefit from improved management, operation and maintenance, if some sort of discipline is enforced through the imposition of Abiana. The Water Users have established their Associations for the schemes already transferred, which can be used as a tool for the assessment and recovery of Abiana with the assistance of the IPD. The imposition of Abiana in the minor perennial irrigation schemes not only helps the Water Users Associations to handle the routine O&M issues, rather it would provide an environment for IPD for sustainable development of new irrigation schemes. There is a misconception that the Water Users Associations are already collecting the water fee but the fee collected is not sufficient to maintain and sustain the schemes. Cases have been reported where IPD was asked to rehabilitate the minor irrigation schemes due to deferred maintenance. Some of the schemes are performing well in Loralai, Qilla Saifullah, etc. There is a genuine need to provide assistance to the Water Users Associations by developing and sustaining Abiana enforcement system so that these Associations are sustainable in financial terms. Community Irrigation Support Unit ( CISU) of IPD lacks the desired capacity to support the Water Users Associations. 12. Recommendations The IPD may critically evaluate the options presented in this policy briefing and develop a detailed proposal for the approval of the concerned quarters. There is a provision in the TA Grant Project for a study to rationalize the Abiana and to develop guidelines for the Abiana collection mechanisms. Based on the analysis made for various options, the proposal based on the flat rates adopted in Punjab may be taken as a workable strategy in the 1 st phase and this strategy may be implemented with a detailed Action Plan to recover the assessed amount of Abiana. This system is successfully implemented in Punjab since The recovery has increased tremendously in Punjab. The flat rate of Abiana can be imposed in the canal commands of Balochistan with effect from Rabi The introduction of Flat Rate Abiana system in Balochistan in line with Punjab would double the assessment from around Rs. 69 million to Rs. 122 millions. This option of flat rate would help the Government of Balochistan to double the current assessment of Abiana and provide revenue to meet one-third of the O&M cost in the Pat Feeder and Khirther canal commands. The flat rate system of Abiana recovery would help to recover one-third of the O&M cost from water users and shall generate mechanism understandable 10

11 by the farmers and would encourage them in the decision making process. Wide publicity may be given for the proposal of Flat Rate of Abiana and a consultative process may be initiated with the farming community and the Revenue Staff of IPD and the Revenue Departments. In line with the Notification of Punjab, the system of flat rate Abiana be reviewed after three years for its efficacy. The is a Series of Issues, which will be prepared and circulated to the policy and decision makers in the province of Balochistan and in other provinces of the Country with an objective to synthesize and disseminate the studies outputs under the TA (PAK). The TA Project entitled Supporting the Public Resource Management in Balochistan is being implemented by the ADB with the Department of Irrigation and Power, Government of Balochistan under the Balochistan Resource Management Programme. The funding is being provided by the Royal Government of Netherlands. The are also based on the research work done by other national and international institutions with an objective to get benefit of the work done elsewhere. The comments and suggestions can be sent at the following address: Project Coordinator, TA 4560 (PAK), Arid Zone Research Centre, P.O.Box.63, Brewery Road, Quetta, Pakistan. shahid_ahmad@hotmail.com Phone No Fax: Reference: Ahmad, S Assessment and Recovery of Abiana in the Indus Basin Canal System of Balochistan A Way Forward. Vol. (2), No. 6, TA-4560 (PAK), Quetta. The topic to be addressed in the next Issue of is: Training needs assessment and formulation of Training Plan for IWRM Policy Support Programme in Balochistan covering: a) assessment of training needs; b) conceptual framework for training needs to support IWRM Policy implementation; c) structure of the training programme; d) requirement for institutionalizing the training programme. 11