Estimation of water demand

• Cropping patterns: Before and after

• Crop income: I = f(y)

• Farm budget

• Market prices are used for determining the income from crop yield

• Water requirement for crop: the additional water should be supplied until marginal physical product (MPP) is reduced which is economically profitable.

• MPP = Marginal benefits/Marginal costs

Criteria for water charge

• Cost of construction

• Ability of Farmers

• Benefits derived from irrigation

• Running cost