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New policy brief on cotton in the United Republic of Tanzania

07 Jun 2013
A new policy brief shows that although cotton is a major export crop in the United Republic of Tanzania, domestic cotton farmers received lower prices than what they could have potentially obtained between 2005 and 2010.

 

Price disincentives were mainly due to taxes and levies in the cotton sector, and to inefficient ginneries. Farm input subsidies and additional support from the Tanzania Cotton Board  (TCB) did not fully compensate for these disincentives. Monitoring African Food and Agricultural  Policies (MAFAP) analysis suggests that the following measures would increase prices for producers:

  • reducing government levies and taxes on cotton producers; and
  • investing in the cotton sector to modernize ginning technologies.

 

Find out more: http://www.fao.org/docrep/018/aq553e/aq553e.pdf

 

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