The Policy Studies Institute (PSI) is calling for the introduction of irrigation water pricing as a strategic solution to address chronic inefficiencies and ensure the long-term sustainability of Ethiopia's irrigation sector.

In an exclusive interview with The Ethiopian Herald, PSI's Agriculture and Rural Development Policy Research Center Head Tadesse Kuma (PhD) emphasized that without a dedicated financing mechanism, the country's major irrigation schemes will continue to underperform--despite heavy public investment.

"Applying an irrigation water fee is critical not just for maintenance and administration, but also to promote efficient water use and conservation," Tadesse said. "Sustainable irrigation is essential if we are to meet the growing food demands of our expanding population."

According to PSI, many large-scale irrigation projects remain non-functional due to poor design, delays in implementation, and lack of ongoing maintenance--primarily because they operate without dedicated financial resources. This failure has led to significant national losses, undermining efforts to enhance food security, generate export revenues, and supply inputs to the industrial sector.

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Despite major investments, Ethiopia's irrigation performance remains below expectations. Tadesse pointed out that establishing a water pricing system would not only encourage responsible use of resources but also help modernize the sector's governance and service delivery.

"Introducing a fair and well-structured water fee would empower irrigation schemes to manage their own maintenance and improve service quality," he noted. "It's a necessary step to unlock the full potential of irrigation in ensuring food self-sufficiency and economic growth."

PSI's proposal is expected to stir National Dialogue around resource management, with experts stressing the need for coordinated efforts to reform the sector and ensure a return on the country's substantial investments.