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Home / Knowledge / News / Textiles / Cotton subsidies hurting farmers worldwide

Cotton subsidies hurting farmers worldwide

29
Oct '08

Subsidies given to the farmers in the US are a matter of great concern for the developing as well as under developed countries. This is the main reason that the Doha round of talks has not been able to conclude successfully recently.

These subsidies are affecting cotton farmers across the globe more in particular the farmers of the poor countries of the African continent. Cotton production in these regions is on a declining mode as the farmers are not able to extract remunerative prices of the crop which is also fondly called the white gold.

The African countries are not able to subside their farmers on the levels the US government doles out to its agriculture sector, due to which losses to the cotton farmer in Africa, according to an aid agency were estimated at a mind-boggling US $305 million in 2001.

For a few countries like Ghana & Ivory Coast, cotton was actually the white gold a till a few years back. They were producing a very good produce and the economy was very much dependent on the same. But now African farmers have lost the zest to cultivate the crop in face of un-remunerative prices and having to face the uncertainty of stocks lying unsold.

The developed countries of Europe and the US are not willing to remove subsidies and the rest of the developing and under developing countries of the world are complaining that their concerns are not being taken seriously.

This is the main reason for the stalling of Doha round of WTO talks with countries like India and China taking a firm stand against subsidies being given to the already rich US farmer.

Fibre2fashion News Desk - India

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