(Ecofin Agency) - The government of Benin said it would no more subsidize the cotton industry. This was decided at the end of a council of ministers held on June 15. It should help the country save close to FCFA21 billion, authorities indicated.

State Minister, Pascal Koupaki, said the measure was subsequent to the sector being regained by the private sector. “With private sector’s actors regaining the industry and committing to rapidly redress it, the good news is that there would be no more State subsidy for fertilizers, or seed cotton unlike FCFA23 billion provided as subsidies during the 2014-15 season,” the minister said.

About prices, Mr Koukpaki revealed: “net purchasing price for seed cotton to producers by ginners is FCFA260/kg, for first-choice seed cotton, and FCFA210/kg, for second-choice seed cotton. Net cost for organic cotton is FCFA312/kg.”

Aaron Akinocho