Cotton production in Uzbekistan is important to the national economy of the country. It is Uzbekistan's main cash crop, accounting for 17% of its exports in 2006. With annual cotton production of about 1 million ton of fiber (4%-5% of world production) and exports of 700,000-800,000 tons (10% of world exports), Uzbekistan is the 6th largest producer and the 11th largest exporter of cotton in the world. Cotton's nickname in Uzbekistan is "white gold" (oq oltin).
The industry is state-controlled on a national level. Over one million public servants, employees of private businesses and children are involved in the harvesting of cotton. Many of these individuals are forced to labor in the cotton fields, receiving little or no pay. In an economy which is the 82nd largest in the world, the role of cotton is crucial for Uzbekistan. But its production has declined over the years. Cotton production peaked in 1988 to 8,000 bales and as of 2012 is around 4500 bales (1 million tons). The reason for this downward trend is attributed to the precedence given to cultivate food crops, an essential requirement. Its cotton exports are mainly to China, Bangladesh, Korea and Russia. Uzbekistan has launched a development effort to many manufacture cotton textiles through enhancing cotton processing chains and mills. The Uzbekistan cotton industry has also been affected by the boycotting of its cotton by many global companies after human rights reports revealed the working conditions in the country, child labor, and forced labor.
Cotton grown on Uzbekistan land was recorded nearly 2000 years ago by the Chinese. Production of cotton dramatically increased under Soviet Russian and the Uzbek SSR, with the Uzbek SSR accounting for 70% of Soviet production. The government strictly controlled the industry and introduced quotas to ensure efficient production at collective farms (kolkhozes). Between 1976 and 1983, the country's leadership defrauded the Soviet central bank by falsely inflating Uzbek cotton harvest yields, characterizing the "cotton scandal" as the most notorious scandal during the tenure of Sharof Rashidov; it resulted in discrediting the political elite of Uzbekistan. Since independence, the Soviet-style quotas have remained intact and the Uzbek government still dominate the national industry.
Because of the risks associated with a one-crop economy as well as from considerations of food security for the population, Uzbekistan has been moving to diversify its production into cereals, while reducing cotton production. Thus, the area sown to cotton was reduced from 1.8 million hectares in 1990 to 1.4 million hectares in 2006, while the area under cereals increased from 1.0 million to 1.6 million hectares (in part at the expense of areas allocated to feed crops). Another cause behind moves to diversify may be environmental, because the large quantities of irrigation and fertilization needed to produce cotton have contributed to the drying up of the Aral Sea and to the severe pollution of the soil in the surrounding areas.