OUAGADOUGOU (Reuters) – Burkina Faso set a minimum farmgate price for cotton growers of 225 CFA francs ($0.47) per kilo for the 2014/15 growing season, down from 235 francs the previous year, the Interprofessional Cotton Association of Burkina (AICB) said on Tuesday.
The association set a production target of 800,000 tonnes of raw cotton for the 2014-2015 season, versus 710,000 tonnes produced the previous one.
It said the farmgate price reduction was due to a fall in cotton prices on international markets which has lasted more than a year. However, the association announced a reduction in the cost of farming inputs, such as a 5 percent cut in fertilizer prices, thanks to a government subsidy.
The AICB said that, following a rise in production in the 2013-2014 season, it would pay a bonus of 10 CFA francs per kg of cotton to producers, bringing the overall return to farmers to 245 CFA francs per kilo.
Landlocked Burkina Faso relies on cotton as one of its major exports.
Although an increasing number of farmers are turning to cotton in West Africa, production remains hobbled by a lack of agricultural technology and stiff competition from subsidised growers such as in the United States.($1 = 474.5060 CFA Francs)