Record cotton subsidies in 11 countries

Record cotton subsidies in 11 countries

The package of subsidies to the cotton industry in 11 cotton producing countries has reached in the season 2011-12 the astronomic sum of USD 4.8 billion

The subsidies of the USA entail direct support to the cotton industry, including direct support to production, border protection, crop insurance subsidies and minimum support price mechanisms. In the season 2010-11 the sum of support was only USD 1.4 billion in the 11 countries under supervision.

The income and price support programmes are impressive and can be had from the following table

Governmental Direct Assisstance to the cotton Sector 2011-12

Country /Season   2010-2011     2011-2012  
Cotton Production in  t Average Assistance per Pound produced / US Cents Assistance to production in million USD Cotton Production in  t Average Assistance per Pound produced / US Cents Assistance to production in million USD
Burkina Faso 646 0 6 694 1 10
China 6400 2 330 7400 19 3076
Colombia 35 11 9 40 28 26
Côte d’Ivoire 59 15 20 59 11 14
Greece 180 70 276 280 43 266
Mali 103 9 20 187 9 38
Senegal 46 3 4 50 3 4
Spain 43 98 93 60 67 89
Turkey 450 30 302 750 26 428
USA 3942 4 320 3391 11 819
All Countries 11904 5 1380 12911 17 4770
Source: ICAC / Baumwollbörse Oct. 2012


Obviously China is at the forefront of support of the cotton sector, followed by the USA, Turkey and Greece.

Those ever increasing subsidies will certainly be tested by some poorer cotton producing nations and maybe we see another complaint at the arbitrary department of the World Trade Organisation (WTO).


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