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FACTBOX-Key issues for Australia's Murray-Darling foodbowl

by Reuters
Friday, 8 October 2010 05:38 GMT

CANBERRA, Oct 8 (Reuters) - A key report into water supplies in Australia's Murray-Darling basin foodbowl has recommended significant cuts to irrigation in order to restore the country's ailing rivers. [ID:nSGE69608L]

The government has until the end of 2011 to consider the proposals from the Murray-Darling Basin Authority.

Below are the key proposals and agricultural impacts:

* Cut irrigation and industry water use by between 3,000 gigalitres and 4,000 gigalitres a year. (1 gigalitre = 1 billion litres)

* A 3,000-gigalitre cut for irrigators would cut agricultural activity by around A$800 million ($784 million) a year, or around 13 percent of agricultural production.

* The sector most affected would be irrigated broadacre agriculture, including cereals and rice, where gross values of production could fall up to 30 percent.

* Values of irrigated cotton production could fall 25 percent.

* Value of dairy production could fall 10 percent, and horticulture less than 5 percent.

* Environment needs an extra 3,000 gigalitres and 7,600 gigalitres a year to flow through the rivers.

* Cuts of more than 4,000 gigalitres would cause too much social and economic damage.

* Cuts to irrigation and groundwater use, including restrictions on diverting groundwater into farm dams, to vary from region to region.

* If proposals are adopted, full effects of the cuts would not be felt until 2019.

The basin plan is available at www.thebasinplan.mdba.gov.au

($1 = A$1.02)

(Reporting by James Grubel; Editing by Sugita Katyal)

Our Standards: The Thomson Reuters Trust Principles.

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