Benin: Government subsidizes cotton production with 24.4 Billion CFA Francs
In Benin, the government is providing a financing of 24.4 billion CFA francs for the cotton production for the 2024/25 campaign. The measure aims to support the sector, which has been facing challenges in recent years due to the global economic situation, including the COVID-19 pandemic and the invasion of Ukraine by Russia.
Initially, upon assuming power, President Patrice Talon decided to eliminate subsidies to the cotton sector, with some success as cotton production significantly increased. However, he reversed this decision two years ago. During the 2022/23 campaign, the government decided to subsidize fertilizer prices for cotton farmers. Subsidies amounted to 55 billion CFA francs in 2022/23 and 30 billion CFA francs in 2023/24.
For the 2024/2025 campaign, authorities have announced the continuation of this measure. The total subsidy will amount to 24.4 billion CFA francs. As a result, NPK fertilizer will cost 17.000 CFA francs per 50-kilogram bag instead of 24.000 CFA francs, and urea will be sold at 15.000 CFA francs per bag instead of 19,500 CFA francs.
The purchase prices of cottonseed from producers for the 2024/25 campaign have been maintained at the same level as the two previous campaigns, set at 300 CFA francs per kilogram for the first choice. For organic cotton, the prices are 360 CFA francs for the first choice as well.
