World Bank Document

Intervention Logic: The Government agrees that gradually replacing the cotton quota system by proper market 

incentives will encourage farmers to increase productivity and diversify, while stimulating innovation and efficiency. 

Improving the terms of trade for cotton production and giving greater flexibility in farming decisions will lead to 

more remunerative prices and will help farmers adopt a more economic and efficient use of land and water. Cotton 

productivity and profitability is also undermined by poor irrigation performance resulting from aging hydraulic 

assets, highly energy intensive water supply, and water intensive irrigation techniques. Reforming the cotton sector 

will be critical to stimulate productivity increase, attract private investments, improve efficiency in the whole value 

chain and unlock the diversification potential for other crop and livestock productions. The CPF will assist the 

Government in achieving its objective of improving the efficiency and overall performance of the agricultural sector 

through a combination of Bank and IFC technical assistance and investments that will facilitate a progressive 

transition towards market-led and privately-managed modernization of the cotton sector.