The Beninese Government will release about 14.9 billion francs CFA as part of unpaid debts due to cotton producers over last three years.
The Government has therefore instructed the Minister of Development, Economy and Finance to raise necessary resources to pay the producers.
Money will cover 4.6 billion francs CFA representing the balance of Government subsidy to autonomous agency CSPR to pay cotton growers as part of 2004-2005 campaign, subject to Treasury making payment to AGROP- Benin network of growers by April 21 2006.
Government will also pre-finance debts amounting to 4.2 billion francs CFA representing outstanding amount from loans of 2005-2006 farming campaign inputs.
It plans to pre-finance an amount of 2.9 billion francs CFA declared by Marlan`s Cotton Industries (MCI) company as part of the seed cotton sales to producers in 2004-2005 campaign which must be paid to Treasury by concerned farmers.
A sum of 3.1 billion francs CFA will be released representing the balance due to cotton producers by state-owned cotton enterprise SONAPRA in 2004-2005 season.
The Minister of Development, Economy and Finance has been asked by Government to verify amounts due to producers.
The Minister of Agriculture, Husbandry and Fisheries has been asked to urge CSPR to undertake urgent measures to collect outstanding amounts to the tune of 509 million francs CFA from the private gins.
The Government would initiate an institutional reform to secure cotton sector.
President Yayi Boni has promised to solve the crisis facing the cotton sector, which is an economic mainstay of West African nation.
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