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Peru to boost cotton farming with new credit policy

Jan '12
The Directorate General for Agricultural Competitiveness (DGAC) under Peru's Ministry of Agriculture (Minag) has announced funding mechanisms to strengthen the country's production and marketing of cotton.

Minag said the small farmers groups have proved their creditworthiness and hence it has become possible to sanction loans up to 7.80 billion Peruvian soles (US$ 2.897 billion) towards growing pima cotton on 2,000 acres, which will benefit 800 small farmers in the Lower and Middle Piura regions.

Under the scheme, a credit of 12 million Peruvian soles (US$ 4.457 million) has already been sanctioned to the Piura-based Multiple Services Cooperative Chusis-Costache Tallan. The loan would be released by the Agricultural Bank (Agrobanco). The amount would be utilized for growing, processing and marketing of nearly 120 million pounds (54.431 million kg) of raw cotton for export.

The Government's implementation of the funding mechanism is expected to yield more revenue to farmers as they would be able to produce more by utilizing the access to credit facilities.

It will also enable Peruvian cotton growers to market their produce in global markets, which they have been intending to do for the last two decades.

Minag said the sanction of new credit will help cotton growers procure various inputs, better seeds and get technological assistance that would result in higher income and standard of living for them.

Fibre2fashion News Desk - India

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