Improving Cotton Production and Crop Diversification in Uzbekistan: Tradable Cotton Production Targets

Cotton production contributes considerably to Uzbekistan’s export earnings. The various reforms implemented to increase the operational autonomy of agricultural producers considered the stability of cotton production, yet often at the expense of farm incomes. Options for improving the farm incomes can be achieved through modifications of the cotton policy settings. Such options are analyzed by replacing the present area-based yield prescriptions by tradable cotton targets between cotton-growing farms. As part of ongoing research, the findings indicate the scope for promoting such modification to tradable production targets as it would potentially increase farm revenues, cotton yields, crop diversification, and sustainable water use at the same level of cotton output as today. The net benefits would increase due to the difference in land fertility and location to irrigation canal between contracted farms. However, the sustainability of such policy modifications would depend on strong mechanisms for price negotiation and conflict resolutio