By Ali Idrissou-Toure
COTONOU, Dec 1 1999 (IPS)

Benin’s cotton industry, the main source of export, is on the verge of collapse. Analysts say SONAPRA, the company which oversees all phases of cotton production, is having difficulties putting money together to pay farmers this year.

Next year’s cotton production campaign, which should have begun early November, has not yet started because all banks have refused to provide funding. SONAPRA needs at least 30 billion CFA francs to see the campaign through, according to the company’s union leaders.

One US Dollar is equal to 600 CFA francs.

Not only have the banks hesitated to finance the cotton production campaign because of debts, but SONAPRA is also owed large sums of money. From 1996 to 1999, its accounts rose to 42 billion CFA francs. Among those who owe it are members of the coalition government of President Mathieu Kerekou.

After a cabinet meeting, on Nov 3, the government made public a list of SONAPRA debtors. The union representing SONAPRA workers has asked the government, who owns the company, to sue the debtors.

Marius Ahyi, who is secretary general of workers union at SONAPRA, says poor management has caused the financial crisis in the cotton industry.

He says top SONAPRA officials have since 1996 demonstrated themselves to be “greedy, vote-catching, and overly-politicised racketeers”.

The company has suffered greatly from government interference in day-to-day management of the firm, which is supposed to be autonomous.

Ahyi singles out former Minister of Rural Development Jerome Sacca-Kina (1996-1998) for SONAPRA’s and the cotton industry’s current malaise. Sacca-Kina, who is a legislator, enjoys parliamentary immunity.

Ahyi has described Sacca-Kinna’s decision to encourage the establishment of raw cotton processing factories, immediately after he became minister in 1996, as unwise.

A total of five privately-owned new processing plants were established by the minister, as compared to three under the former regime of President Nicephore Soglo (1991-1996), in addition to eight SONAPRA-owned plants.

Critics believe that the increase in the number of plants to process more than 650,000 metric tonnes of raw cotton was unwise, since actual production was only 350,000 tonnes.

The minister’s second mistake, according to SONAPRA’s workers union, was the increase in the price of cotton paid to producers, which went up from 165 to 200 CFA francs per kilogramme in 1996, and to 225 CFA francs in 1997.

The two increases have been described by critics as “political prices to thank the producers after the election of President Mathieu Kerekou” in March, 1996.

“The consequence of this decision is the inability to control fluctuating prices” of cotton fiber on the world market, Ahyi claimed. World prices in cotton fiber are so low that it would be “suicidal for SONAPRA” to maintain the current price to producers at 225 CFA francs per kilogramme.

The union which, several months ago, demonstrated considerable distress discussing SONAPRA’s difficulties, is today ready for any solution which could help put the company back on track. The workers are even calling for privatisation, which might prevent the loss of jobs and salaries.

Ahyi says the workers agree that the buying price of cotton paid to producers should be lowered. He indicates that other countries in the sub-region have taken into account the world market price for cotton. Mali has set its price at 150 CFA francs and Burkina-Faso at 160 CFA francs.

SONAPRA workers expect the Beninois government to reduce the price and align itself more ith neighbours Mali and Burkina Faso, who are important cotton producers.

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