Improving ginning technologies and reviewing taxes to benefit cotton farmers in the United Republic of Tanzania
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FAO
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Full Text Article. Also available at: http://www.fao.org/3/aq553e/aq553e.pdf
MAFAP analysis shows that producers of raw cotton received prices that were lower than what they would have received without policy interventions and with better functioning value chains. These low prices were associated with taxes and levies in the cotton market. Moreover, cotton farmers would get better prices if the technical efficiency of ginners was improved. The reasons why only a very small percentage of cotton lint is spun domestically, and levels of additional processing remain persistently low, should be explored further.
MAFAP analysis shows that producers of raw cotton received prices that were lower than what they would have received without policy interventions and with better functioning value chains. These low prices were associated with taxes and levies in the cotton market. Moreover, cotton farmers would get better prices if the technical efficiency of ginners was improved. The reasons why only a very small percentage of cotton lint is spun domestically, and levels of additional processing remain persistently low, should be explored further.
Keywords
Low prices, High taxes, Agricultural exports, Cotton, Global demand, Taxation, Raw cotton, Value chain, Cotton market