Strong reactions have been triggered in the agricultural sector following a decision by the Water Development Department to impose retroactive water use charges on borehole owners. Farming organisations argue that the demands, covering the period from 2017 to 2024, create severe financial strain and raise issues of fairness, particularly in areas without government irrigation projects.
Retroactive charges imposed by the Water Development Department
Tensions are rising among farmers after the Water Development Department began sending letters to farmers and agricultural companies operating boreholes, requesting payment of water use fees with retroactive effect from 2017 to 2024.
According to agricultural organisations, in many cases the Department is demanding payments amounting to tens of thousands of euros, with a strict deadline of 90 days for settlement.
Environmental levy approved in 2017
The charge in question concerns an environmental levy decided in 2017. At the time, following reactions from agricultural organisations, officials at the Water Development Department did not proceed with its implementation.
Nine years later, however, the levy has been reactivated, prompting strong criticism from the farming community. Agricultural representatives describe the move as one of a series of successive blows to the sector, noting that it follows a recent Cabinet decision to cut irrigation water supply by 33 percent in 2026.
Parliamentary scrutiny scheduled
The issue is set to be discussed on Tuesday by the House of Representatives’ Agriculture Committee under the agenda item “The serious financial problems faced by farmers and livestock breeders who do not receive water from irrigation projects”.
The matter was registered ex officio following a proposal by Members of Parliament Charalambos Pazaros, Kyriakos Hadjiyiannis and Nikos Syka of DISY, Yiannakis Gavriel, Andreas Pasiourtides and Valentinos Fakontis of AKEL, Chrysanthos Savvides of DIKO, and Ilias Myrianthous of EDEK.
Joint letter to the Minister of Agriculture
In a joint letter addressed to the Minister of Agriculture, Rural Development and Environment, Maria Panayiotou, agricultural organisations PEK, EKA, Panagrotikos, Nea Agrotiki Kinisi and Euroagrotikos are calling for the withdrawal of the environmental levy and requesting a meeting with the Minister.
The letter states that the Water Development Department is informing farmers that an “additional charge”, described as an environmental and resource fee, is being imposed for the abstraction of irrigation water from sources outside Government Water Projects, with application covering the years 2017 to 2024.
It further notes that the levy is being imposed even in areas where no irrigation infrastructure has historically been developed to serve farmers.
Impact of drought and unequal access to water
Agricultural organisations stress that the years in question were particularly difficult for farmers due to climate change, the Covid-19 pandemic, prolonged drought and water scarcity.
They point out that Cyprus has experienced an extended period of drought over the past five years, during which dams have emptied and boreholes have dried up. At the same time, they underline that farmers do not have equal access to water, resulting in significant disparities between producers and, in some cases, unfair competition.
Statements from agricultural representatives
Speaking to Politis, the Secretary General of PEK, Christos Papapetrou, said that the immediate implementation of the regulation, with retroactive effect from 2017, places farmers under an unprecedented financial threat with potentially devastating consequences. He reiterated that, in many cases, the Water Development Department is demanding payments of tens of thousands of euros within a 90-day deadline.
He described the decision as another blow following four consecutive years of drought, sharp increases in production costs and the recent Cabinet decision to reduce irrigation water by 33 percent in 2026.
Water allocation decisions for 2026
Following a decision by the Advisory Committee on Water Management, which was conveyed last week by the Minister of Agriculture to the Presidential Palace, the Council of Ministers approved a 10 percent reduction in water supply for domestic use and a 33 percent reduction for irrigation.
Specifically, 103.4 million cubic metres will be allocated for domestic use in 2026, compared to 114 million cubic metres in 2025, as a preventive measure to avoid uncontrolled water cuts during the coming summer. Irrigation allocations will be reduced to 22.2 million cubic metres, down from 33 million cubic metres last year, a decision that agricultural organisations described as particularly painful for the sector.
Representatives of farming organisations reacted strongly during the meeting of the Advisory Committee on Water Management and voted against the decision, arguing that larger cuts should have been applied to domestic water supply in order to support primary production.
Further reactions from Panagrotikos
Commenting on the same issue, the President of Panagrotikos, Kyriakos Kailas, told the Cyprus News Agency on Saturday that a 2017 decision imposed an additional charge of one cent per tonne of water, on top of the cost of water itself.
He added that although agricultural organisations had reacted at the time and the Water Development Department did not implement the decision, it has now chosen to apply it retroactively. He argued that farmers are being placed under constant pressure, describing the Department’s action as particularly damaging.
He further stated that the move contradicts the stated objectives of the President of the Republic, who had emphasised efforts to increase agricultural exports.