Chad

Administrative Structure

Irrigation farming near Mao in Kanem Prefecture
Courtesy UNICEF (Maggie Murray-Lee)

In 1989 the official structure responsible for the production and marketing of cotton was composed of the ONDR under the Ministry of Agriculture and Rural Development, of Cotontchad, and of the Cotton Price Stabilization Board (Caisse de Stabilisation des Prix du Coton--CSPC). Founded in 1965, the ONDR was originally given responsibility to monitor, improve, and assist all agricultural production. By the mid-1980s, however, the government's emphasis on cotton production made the ONDR an important factor for the cotton industry only. Cotontchad, successor to Cotonfran, was founded as a parastatal company in 1971 to collect, buy, gin, transport, and export the cotton crop. The company also had responsibility for elements of the small national textile, soap, and edible oil industries. The CSPC's task was to stabilize prices paid to peasant producers by funding operating losses incurred by Cotontchad. Assuring a constant price to the producer not only helped maintain a certain level of production for Cotontchad but also limited costs to the company by holding down producer prices. The ONDR, the CSPC, Cotontchad, and the government itself were involved in determining producer prices. In addition, the CSPC supported the program to improve yields. Between 1971 and 1983, an estimated 57 percent of all payments by the CSPC were made in conjunction with the program to improve cotton production.

Other major actors in the cotton industry were the private banks, the French Textile Development Company (Compagnie Française pour le Développement des Textiles--CFDT), and French and EC institutions, as well as the World Bank. Private banks provided the credits necessary to Cotontchad and to the peasants to finance the opening of each planting season and especially to provide capital for the import and distribution of fertilizers and insecticides. The CFDT marketed Chad's cotton on the world market. The CFDT also contributed to the smooth operation of Cotontchad through technical agreements to maintain equipment and to provide expertise in improving cropping methods through the ONDR. In addition, the CFDT supported research carried out by the Cotton and Textile Research Institute (Institut de Recherche sur le Coton et les Textiles-- IRCT), a small public research facility located near Doba. Subsidies to Chad's cotton production under the Lomé Convention were paid through the Stabex system (see Glossary) of the EEC. Those funds were channeled to the CSPC for price support to the producers. The CSPC also received portions of funds needed to assure payments to producers from Cotontchad as well as from the central government. Between 1971 and 1983, virtually all income to the CSPC derived from rebates paid by Cotontchad into the system.

After 1984 the system became far more dependent on external sources of funds (such as Stabex) because of sharply reduced income to Cotontchad. In addition to Stabex, the EC's European Development Fund (EDF) contributed directly to the program of improving yields. French assistance remained crucial to the system. The Central Fund for Economic Cooperation (Caisse Centrale de Coopération Economique--CCCE) was a shareholder in Cotontchad, and the other arm of French foreign aid, the Cooperation and Aid Fund (Fonds d'Aide et de la Coopération--FAC), directed assistance to the southern zone in support of the cotton complex. FAC also provided direct assistance to the government, which, among other things, helped pay the salaries of officials and functionaries, especially those in the ONDR.

Data as of December 1988