The Impact of Proposed Water Pricing Policies on the Comparative Advantage of Agricultural Products in Kashmar

Presently, the country has a problem of water scarcity, therefore, development of alternative approaches with operational capabilities can be considered as a matter of utmost importance. In this study, using comparative advantage indexes (i.e. domestic resource cost (DRC), social cost benefit ratio (SCB) and net social profit (NSP)), the ranking of crops and adaptation of products with limited water resources and current cropping pattern with comparative advantage patterns in the district of Kashmar were studied. Then, by analyzing the cost of consuming water input at the rate of 15%, 35% and 60%, the sensitivity analysis of this input was analyzed. Agricultural and trade data were collected from the Ministry of Agriculture Jihad and the Customs, respectively, in the years 2016-2017. After determining the optimal values of the indices, the results showed that saffron and grapes had comparative advantage with both free market and official exchange rates, while wheat and barley had a comparative advantage only in the official exchange rate. Also, the sensitivity analysis of water input showed that comparative advantage and product ranking varied in the three different scenarios (15%, 35% and 60%). Finally in order to adapt the comparative advantages of the products with the region's conditions, enhancement of support and implementation of suitable research and promotion plans were suggested.