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Provision of subsidies for agricultural inputs for 
cotton/wheat producers: Special state subsidies are 
provided for agricultural inputs: fertilizers, mainte-
nance and operation of irrigation systems, fuel, and 
machinery services. However, only 8% of these sub-
sidies represent input price differentials. More than 
half of these subsidies are targeted loans at a prefer-
36 Veldwisch, “Dehkans, Diversification and Dependencies.”
37 P. Roudik, “Legislation on Use of Water in Agriculture: Kyrgyzstan, Tajikistan, and Uzbekistan,” 2013, http://www.loc.gov/law/help/water-law/
central-asian-states.php.
38 W. Sutton et al. “Reducing the vulnerability of Uzbekistan’s agricultural systems to climate change,” World Bank Study, 2013.
39 N. Djanibekov et al. “Pros and cons of cotton production in Uzbekistan,” Case-study 7-9, Cornell University, 2010.
40 Ibid.
41 G. J. Veldwisch et al. “Lost in transition? The introduction of water users associations in Uzbekistan,” Water International, 2013.
42 Djanibekov et al., “Pros and cons of cotton production in Uzbekistan.”
43 Abdullaev et al., “Agricultural Water Use and Trade in Uzbekistan.”
44 Z. Lerman, “Agricultural development of Uzbekistan: the effect of ongoing reforms,” Discussion paper 7.08. Department of Agricultural Economics 
and Management, The Hebrew University of Jerusalem, Israel, 2008.


Revisiting Water Issues in Central Asia: Shifting from Regional Approach to National Solutions
135
ential interest rate of 3%, which is significantly lower 
than the market interest rate. The credit is automat-
ically deducted by the banks after the account of the 
farmer has been credited with the payments for the 
cotton/wheat sales.
45
 Very frequently those who allo-
cate the money for agricultural inputs are not knowl-
edgeable enough in terms of the needed quantity and 
prices, which creates another challenge for farmers. 
Lack of incentives for non-cotton or non-wheat 
production: The income of cotton/wheat produc-
ers is coming from growing other crops. However, 
there are not many benefits to support the farmers 
in this respect. They often face problems related to 
export restrictions imposed by the government. 
Export of agricultural produce can be implemented 
only by state institutions and joint-ventures such as 
Uzulgurjisavdoinvest, and Matlubotsavdo.
46
 The state 
controls the prices to maintain the agricultural prod-
ucts affordable for national consumers. Situations 
when supply exceeds domestic demand and export is 
restricted leave farmers no choice but to dispose their 
produce as they don’t have storage facilities. 
In terms of decision-making, Water Users’ 
Associations in Uzbekistan are criticized for being 
the pure extension of the existing government struc-
tures responsible for the control of agricultural pro-
duction – district level agricultural authorities and 
regional governors (hokims). The WUA chairman is 
indeed appointed by the hokim. WUAs report to state 
representatives on the activities of the previous week 
and get new instructions for the next one. District 
agricultural authorities and regional governments 
monitor and control the fulfillment of state cotton/
wheat production and ensure the timely water deliv-
ery for these purposes through WUAs. Water users 
meet rarely, and farmers in WUAs don’t participate in 
the water distribution debate even at the local level.
A More Complicated Picture: Financial 
Constraints Are Key
The inefficiency of WUAs means that responsibil-
ity for water use lies with the practices of farmers. 
Several field studies
47
 reveal that some farmers inde-
pendently install pumps and water saving irrigation 
technologies (drip irrigation); dehkans and farm-
ers negotiate their irrigation turns, collectively buy 
pumps, block or clean canals, and complain about 
the lack of water to their water managers.
48
 Although 
one of the rationales of the WUAs is that water man-
agement is up to the state, farmers value water as an 
important source for their lives (suv – hayot, “water 
is life”)
49
 and welcome the idea of not wasting it. They 
have also demonstrated the ability to manage water 
when necessary. 
Therefore, the major problem of water overcon-
sumption in agriculture is not the absence of agency 
among water users and their water use irresponsibil-
ity, but rather financial constraints. Rehabilitation of 
deteriorated infrastructure and introduction of water 
saving technologies (drip irrigation) are very costly
and neither government nor water users can afford 
to implement them countrywide. According to the 
Food and Agriculture Organization (FAO), rehabil-
itation and modernization costs of the old irrigated 
areas are estimated at $4,500/ha. The cost of drip 
irrigation development on existing irrigated areas 
varies between $ 2,300 and 3,500/ha. Average annual 
operation and maintenance costs for full recovery is 
about $450/ha for standard systems, more than $640/
ha for drip irrigation systems and $680/ha for pump 
systems.
50
 The government’s willingness to transfer 
financial responsibility for infrastructure operations 
and maintenance to farmers cannot succeed as many 
farmers are not ready for that financially given the 
above-mentioned conditions under which they op-
erate.
The lack of technical expertise in the government 
support and insufficient knowledge by farmers them-
selves is another obstacle for water use efficiency in 
agriculture. Moreover, the reproduction of the Soviet 
water allocation system was designed for collective 
farms, the number of which (in 1991 Uzbekistan 
counted 971 kolkhozes and 1,137 sovkhozes
51
) was 
far less than the current number of water users (more 
45 Djanibekov et al., “Pros and cons of cotton production in Uzbekistan.”
46 “Uzbekistan ogranichil eksport sel’khozproduktsii v tselyakh nasyshcheniya sobstvennogo rynka,” Kao-a.kz, October 1, 2009, .http://kao-a.kz/ru/
news/232-zbekistan_ogranichil_eksport_selkhozprodukcii_v_celah_nasyshhenija_sobstvennogo_rynka/.
47 L. Oberchirker and A. K. Hornidge, “‘Water Is Life’—Farmer Rationales and Water Saving in Khorezm, Uzbekistan: A Lifeworld Analysis,” Rural 

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