Cotton producers are victims of low price for their seedcotton and high prices for the inputs they buy
This phenomenon in some part of Pakistan derives from kind of agreement between, in one hand ginners themselves and in the other hand ginners and traders. Ginners lend money to traders who use this money to buy inputs they resell on credit to farmers. Unfavorable prices to farmers result from this process. Government intervention is requested against the assumed agreement between ginners.
Source: Trader-factory owner nexus exploits cotton farmers. By Malik Tahseen Raza. Dawn on the Internet. Nov. 19, 2007
Last update: 07/11/2008 - CIRAD © 2007 (All rights reserved) - Please comment