Abstract
This paper highlights the importance of water management in agricultural production in Bangladesh. It has reviewed the role of the economic value of water in different dimensions including economics of international water and the scarcity value of dry season irrigation water to farmers. It focuses on measuring the marginal product of irrigation expenses for the irrigated rice in Bangladesh under dry ( boro ) season. Using a Translog production function, the study estimates the marginal product of irrigation expenses per BDT for irrigated boro rice by various farm sizes and regions. In USD it ranges from 0.01 to 0.03 for irrigated boro rice in Bangladesh. The Eastern Hills has the highest marginal product of irrigation expenses per BDT. The study has important implications for an optimal allocation of water between different groups of farmers.
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