Cameroon’s cotton sector in crises

The trouble in the Cameroon cotton sector does not seem to come from the direction one would imagine.

Statistics for 2015 interestingly show a production increase of 38 per cent during the last three years to 295,400 metric tons but the financial figures have rather dwindled to a disturbing level.

All that it takes to boost a sector seem to be available with commercial banks injecting in an almost steady rate, money to ensure fluidity in management and the wellbeing of the population involved in cotton production.

The cotton population is buoyant and dynamic with renewed enthusiasm for cotton growing because it is their livelihood, excellent working relationship exist between growers and the cotton company, SODECOTON; a cotton seed price setting mechanism and price risk management fund equally exist and there is ownership and mastery of production techniques by growers.

In addition cotton input credit for workers put in place by the growers’ umbrella organisation exists. All these and many other mechanisms have been put in place for a production that is continuous.

But it is disturbing to hear that the company which serves as the breathing wire for workers is now facing financial problems. Where did things go wrong is the question on every mind.

The situation according to informed sources is blamed on the exigencies of changing commodity world market. In effect, China known to be the main buyer of cotton is said to have turned to the production of synthetic material as panacea to the effect of the fall in oil prices on the World market.

As if that were not all, some of the hurdles seem to be coming from within especially the complications brought in by the public contract procedure. SODECOTON is presently faced with the problem of managing ill adapted machines which it acquired within the exigencies of public contracts.

This is one of the rare situations where this company is coming across market difficulties. The consequences may be devastating if nothing is done and fast too to save the situation. We are talking of a company that provides employment to over 2,500 people and a company on whom the livelihood of over two million people hinge.

The cotton sector enables for the annual distribution of season credits both for cotton and food crops estimated at over FCFA 30 million, creation of almost 5,000 jobs each year through village groups and contribution to government revenue through taxes and earnings and development of related activities involving transport operators, input suppliers, wholesalers and retailers.

Something needs to be done and the Ministry of Agriculture and Rural Development is challenged.