Peru Has Made It Clear That It Is Not in Favour of Giving Subsidies for Cotton Farming

The Government of Peru has made it clear that it is not in favour of giving subsidies for cotton farming, and instead it is willing to promote growing of other crops to remain competitive in the market.

The Government cannot persist with eternal subsidies, which are practiced in large countries, Minister of Agriculture and Irrigation Juan Manuel Benites told reporters in Lima, reports andina.

The Minister said they have to be more creative and the Government would support cotton farmers in switching to grow other crops.

He said that he understands people rooting for Peruvian varieties like Pima cotton, and added that it requires being competitive and profitable to survive in a competitive market, and one cannot live only in memories.

In this regard, he said if farmers are facing difficulty in cotton production, they can apply to the Compensation Program for Competitiveness (Agroideas) of the Ministry for change of crop.

Agroideas would facilitate substitution for cotton and would also extend finance to the farmers through Agrobanco financing for sustainable production of the new crop.

The Ministry is ready to support producers who want to change their crops and enter into more profitable markets, Mr. Benites said.

However, Agrobanco would continue to support cotton farmers by extending credit for marketing, so they can effectively counter competition from foreign cotton that is subsidized by their governments, he added.