The concentration of policy interventions on cotton and rice is impeding diversification. The cotton value chain is heavily subsidized, both through price incentives and agricultural expenditureswhile the rice value chain is mainly supported through agricultural expenditures (agricultural infrastructures and input subsidies).  However, the convergence of budgetary support to cotton and rice diverts resources away from export diversification and investment in food crops value chains. The objective of diversification, one of the priorities of the new Plan national d’investissement du secteur agricole (PNISA), remains unmet.

Producers are still penalized by market inefficiencies despite investments. Inefficiencies along value chains, especially poor roads and market infrastructures, lead to production disincentives. This is taking place despite the fact that investment in rural and agriculture infrastructures represented 30 percent of expenditures in support of food and agriculture (average 2005-2012) which is consistent with the objectives of the PNISA. This highlights the need to pursue investment effort.

Short-term policy support agriculture undermines potential long term positive effects. PNISA recognizes that the vulnerability of the agricultural sector to price shocks is a major constraint for the development of the sector. However, the government tends to increasingly support production with short-term policy measures, such as the input subsidies programme. This diverts resources away from investments having long-term effects. For instance, investments in storage facilities decreased.

Millet and sorghum are still largely neglected while they are crucial food staple crops. Producers of sorghum and millet received strong production disincentives from 2006 to 2012. Indeed, due to the very low level of commercialization, producers could not benefit from the domestic and regional market opportunities. To attain the PNISA objectives, higher support to millet and sorghum marketing will be required.

Information on market trend for livestock is insufficient. Livestock producers received price disincentives to production as price in Mali are low compared to the region. A more effective market information system ensuring better knowledge on market fundamentals as well as improved information on market opportunities in the domestic and regional markets would greatly benefit producers.

Download the report: Analysis of public expenditure in support of food and agriculture in Mali, 2006-2012 (in French)

For additional information on the indicators shown in the graphs and the terminology used, please refer to MAFAP’s Glossary on Public Expenditure and Methodological Guidelines - Volume II - Public Expenditure. For detailed information on the data provided, please go to the MAFAP database.