The Peruvian government is committed to promote growing of other crops in order to increase the competitiveness of cotton farmers in the market, instead of give them subsidies.
The government cannot persist with eternal subsidies, which are practiced in large countries, the Agriculture and Irrigation Minister, Juan Manuel Benites, told reporters in Lima.
The minister said they have to be more creative and the Ollanta Humala’s administration is expected to further support cotton farmers in switching to grow other crops.
Likewise, 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, Benites pointed out 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,fibre2fashion.com reported.
This entity is set to facilitate substitution for cotton and would also extend finance to the farmers through Agrobanco financing for sustainable production of the new crop.
Our sector is ready to support producers who want to change their crops and enter into more profitable markets, Mr. Benites said.
Moreover, 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. Agriculture and Irrigation Minister, Juan Manuel Benites said that eternal subsidies were not an option.