Paper Title
Development of Price Elasticity Curve for Agricultural Water Demand in Mandalay Region

Abstract
This paper presents about the development of price elasticity curve for agricultural water demand in Mandalay region. There are two main sources of irrigation systems; dam irrigation and river pump irrigation system. Sae Daw Gyi, Kinda, Thitsone and Kyee Ni are considered as dam irrigation and Nyaung Oo is considered as river pump irrigation system. Contingent Valuation Method is used to set up questionnaire survey for getting information about farm holding acres of famers, willingness to pay for irrigation water, and demographic data. A sample of 307 farmers was selected and the survey was conducted using face-to-face interviews. Irrigation water requirements of various crops are calculated using CROPWAT8.0.Desired price for agriculture water use and water demand are plotted to develop price elasticity curves for the cultivated crops in the study area. The values of price elasticity are evaluated by mid-point formula. For dam irrigation system, the unit prices of monsoon paddy, summer paddy, chickpea, green gram, sesame, sunflower, cotton, black gram and onion are evaluated. For example, the mean value of unit price for monsoon paddy is 2231MMK/season. In river pump irrigation system, the unit prices of monsoon paddy, summer paddy, chickpea, green gram, sesame and groundnut are evaluated. Among them, the mean value of unit price for monsoon paddy is 5849 MMK/Season. Willingness to pay equation is developed by using Linear Regression Model. The mean willingness to pay value of monsoon paddy for dam irrigation is 2182 MMK/Season. The mean willingness to pay value of monsoon paddy for river pump irrigation is 6975 MMK/Season. The unit price values and the mean WTP value of Monsoon paddy are nearly equal in dam irrigation system and the unit price values are less than mean WTP in river pump irrigation system. Therefore, the unit price values from price elasticity curves are defined as the water prices of agriculture water pricing for both irrigation systems. Keywords- Price elasticity, willingness to pay, Contingent valuation method, mid-point formula, Linear regression.