Country Listing

Chad Table of Contents


Pricing Mechanisms

Prices paid to Chad's cotton producers, the peasants of the southern soudanian zone, have risen slowly over the years. The structure included separate prices for white cotton and for yellow cotton. From 1971, when the distinction arose, to 1978, the price for white cotton was CFA F50 per kilogram (for value of the CFA F--see Glossary) and stayed at this level during much of the period of heavy civil conflict until 1982. From 1982 to 1985, the price increased steeply to CFA F100 per kilogram, at which point it had leveled by 1987, despite downward pressure because of the fall in world prices and a new program of cost reductions by Cotontchad under World Bank direction. The price paid for yellow cotton has not kept pace with this rise, reaching only CFA F40 per kilogram in 1983, where it remained through 1987.

The price paid to the producer traditionally has not covered actual production costs, either for the peasant or for Cotontchad. As much as 50 percent of the costs of production has been borne by outside donors, primarily from the EDF, through the Stabex system. Between 1981 and 1984, the EDF financed between 70 and 80 percent of the costs of the program to improve yields, largely through subsidies to the CSPC for price support and subsidies for Cotontchad in the initial purchase of insecticides and fertilizers. The costs of improvements have been reimbursed only partially from payments made by producers through the ONDR.

Data as of December 1988