Cameroon’s Cotton Development Company (SODECOTON) is considering setting up a “Price Risk” Management Fund for the Cotton Sector, SODECOTON said on Monday. According to SODECOTON, the move is aimed at dealing with the fluctuations of cotton prices on the international market.
Fluctuation of prices generally hurt producers and the price stabilization fund that will be jointly managed by SODECOTON and the National Confederation of Cotton Producers in Cameroon (CNPC-C) will guarantee a minimum price for cotton, in case of sudden fall in the price of the commodity on the world market.
The announcement of the setting up of the fund is good news for some 250,000 producers who are supervised by SODECOTON, which regulates an important part of the economic activities in the northern regions of Cameroon.
Since August 31, 2013, the prices of cotton worldwide have lost 30 percent of their value, which seriously reduces cotton companies’ income.
