Peru launches new credit to promote cotton agriculture

Recently, the General Department of Agricultural Competitiveness under the Peruvian Ministry of Agriculture announced a mechanism to consolidate the country’s cotton production and distribution.

Peru’s Ministry of Agriculture said that small farmers’ groups have already demonstrated their good credit standing, and that it is therefore possible to approve up to 7.8 billion Peruvian salsa ($2.897 billion) for farmers planting 2,000 acres of Pima cotton. This will benefit the 800 small agricultural groups in the lower Piura region.

According to this credit plan, 12 million Sol (4.457 million US dollars) have been approved by Chusis-Costache Tallan, Piura’s multi-service cooperative agency. This ** will be issued by the Agricultural Bank. The funds will be used to grow, process and distribute nearly 120 million pounds of raw cotton.

The Peruvian government’s implementation of the plan is expected to generate more income for farmers because they can use credit facilities to produce more cotton.

This will also encourage Peru's cotton farmers to distribute their products globally.

Peru’s Ministry of Agriculture said that the approval of new credit will help cotton farmers purchase various inputs, better seeds, receive technical assistance, and lead to higher income and living standards.