The impact of implementing drip irrigation technology on farmers' costs and income: an economic assessment of subsidy efficiency (2019-2025)

Abstract

The article assesses how far the state subsidy for drip irrigation in cotton growing pays off, both for the farmer and for the budget. The calculations rely on open data from normative acts, official reports and scientific publications. The payback period, net present value and break-even yield of the project were determined, and the efficiency of the subsidy was measured by a multiplier and by the subsidy per cubic metre of water saved. The results show that the farmer benefits from the system mainly through higher yields, while a subsidy of 8 million soums lowers the break-even yield by about 2.9 centners per hectare. From the state's perspective, the subsidy per cubic metre of water saved is 7-12 times higher than the water tariff. It should therefore be justified not by water savings alone, but by yield gains, energy savings and the social value of water scarcity.