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
|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|
|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).