Cameroon to Increase Fertilizer Subsidies
2 August 2011 Good news is on the way for cotton farmers in Cameroon who have built their lives around growing the fiber: Prices are up and costs are about to go down.
While far off their $2.00/lb highs from earlier this year, prices are still attractive (more than 40 percent higher than they were in 2009), and the government plans to help with input costs by increasing subsidies on fertilizer, dropping the price per bag by more than $5.20, according to this story by Radio Natherlands Worldwide.
Growers in Cameroon still face significant challenges, however. While the global economic recession has largely been blamed for the recent declines in production — from 146,000 tons in 2008/09 to about 110,000 tons in 2009/10 — there is also no small amount of criticism being directed at Sodecoton (Society for the Development of Cotton in Cameroon). While it assists farmers by providing funds to get their businesses off the ground and purchase tools and inputs, farmers are essentially obligated to sell their production to the Society. Some growers bypass the policy and sell directly to buyers in neighboring countries at prices much higher than Sodecoton pays, creating an unfair business environment.
To read more stories about cotton, visit Cotton International’s website.
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