In 2020, cotton production collapsed by three quarters in Mali, from 700,000 to 147,000 tonnes. Fearing a fall in producer prices and the removal of fertilizer subsidies, cotton producers turned away from white gold. But it is strategic for Mali, and the Ministry of Agriculture is intensifying consultations with the agricultural world to revive production.
When cotton withers, Mali is on its knees. The sector supports more than four million people and accounts for 14% of national wealth. At least weighed, for last year, production collapsed by three quartersleaving the country amazed at such a collapse. Admittedly, international demand, particularly Chinese, has fallen by 30% due to the Covid-19 pandemic, but the explanation lies in two unfortunate decisions.
The purchase price guaranteed by the state has increased from CFAF 275 per. Kilo in 2019 to CHF 200 in the 2020 campaign. And the manure support was suspended, halving the manure bag. As a result, cotton growers have abandoned white gold.
“They did not leave the land abandoned, they grew grains such as millet, maize, etc. But unfortunately this resulted in a significant loss of cash flow at the level of households, producers and populations,” explains Mahmoud Ould Mohamed, Malian Minister of Agriculture.
Avoid repeating the same mistakes in 2021
Also for the state, the loss is large when it comes to foreign exchange earnings, as cotton is the second export commodity behind the yellow metal. The Minister of Agriculture will therefore avoid repeating mistakes. The guaranteed purchase price for cotton will increase, he assures us. “It will be an incentive price. The government will spare no effort to ensure that the basic purchase price of cotton (for the campaign, ed. Note) 2021-2022 is very, very attractive, taking into account macroeconomic balances and price developments in the world market. “
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The government has also not yet decided to what extent the subsidy for fertilizer will be reintroduced this year, as cotton growers hope. “Issues regarding input subsidies were the subject of great debates during the national cotton meetings. Relevant proposals have been made by stakeholders and partners in the sector. These proposals are examined by the competent teams within my department to choose the best solution, ”adds the Minister of Agriculture.
Develop cotton processing
In addition to the next season, Mali wants to accelerate the development of the cotton processing sector. This accounts for almost 2% of total production. The will is not new, but Mahmoud Ould Mohamed hopes the incentive schemes will pay off quickly.
“We have accepted a number of exemptions for customs clearance for processing equipment, free import of parts from certain prices. Many facilities have also been created for the creation and strengthening of units for processing cotton fibers. We also have agropolis projects, people who want to build an entire value chain in cotton production. We are studying the case files with the ministries involved, trade, economy and finance, ”said Mahmoud Ould Mohamed.
The Minister is all the more expected at the turn of the producer, as only the Malian state and its partners are able to restore the sector sustainably.
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