Competiveness and incentive production of cotton sector in Mali

The Cotton production of has enormous problems originate from external factors (higher fertilizer prices, the producer price fluctuation) and internal factors (internal credit, claims of producers of short period payment of cotton seed to creditors), whose effects influence supply of Malian cotton. This work intervenes during an economic crisis when measures have been taken to increase cotton production in Mali. The objective of this work is to analyze the effects of input subsidies and increase seed cotton prices in relation with the global market of cotton fiber on the performance of the cotton sector in Mali.
Surveys were conducted with a sample of 240 farms in four CMDT zones with two villages by area in 2008 /09, 2010/ 11 and 2011 /12, and the data from the CMDT (CMD, 2012) were used to develop a matrix of Policy Analysis. The results of analysis showed an improvement in the level of competitiveness of the cotton sector in Mali, and the level of incentives for the production of seed cotton with a subsidy of 50 % of the normal market price and the price increase of cotton seed with motivating factors.