New Report Urges Local Irrigation Equipment Production to Tackle Water Scarcity in Central Asia
The Eurasian Development Bank (EDB) and the United Nations Industrial Development Organization (UNIDO) have jointly released a report titled Irrigation Equipment Production in Central Asia: Industrialising the Water Sector, highlighting the urgent need to localize irrigation equipment manufacturing in the region. The publication argues that establishing a domestic irrigation equipment manufacturing sector could serve as a strategic response to mounting water challenges in Central Asia. It calls for coordinated action by regional governments, international organizations, and private sector actors to implement investment and policy frameworks aimed at reducing reliance on imports and fostering a self-sufficient production ecosystem. Heavy Dependence on Imports The report identifies irrigation equipment as a key strategic area for bolstering food security and managing water resources more efficiently. Currently, the regional market for such equipment is valued between $130 million and $200 million, with over 90% of this demand met through imports. Despite this dependency, governments across Central Asia are taking proactive steps to modernize agriculture. Substantial financial and non-financial support is being extended to farmers, and plans are underway to expand irrigated farmland and adopt advanced irrigation technologies. According to the study, the irrigated area in Central Asia is projected to grow to 10.6 million hectares by 2040. This expansion is expected to drive demand for up to two million units of irrigation equipment, with the potential to generate $426 million annually in local production. The report further estimates the annual market for new sprinklers at $114 million and for drip irrigation systems at $220 million. Cluster-Based Development To address these needs, the publication proposes a cluster-based approach to developing local irrigation equipment production hubs. Nikolai Podguzov, Chairman of the EDB Management Board, emphasized the economic potential of localization: “The region’s demand for irrigation equipment could more than double by 2030. Localizing production will not only help retain investments within the local economy but also stimulate the development of precision irrigation technologies, digital water management tools, engineering labs, and knowledge-sharing centers focused on best practices in irrigation and water use.”