Benin Government Introduces New Incentive Scheme for Cotton, Soybean, Rice, and Cashew Producers
The Benin government has introduced a new incentive scheme for producers of cotton, soybean, rice, and cashew, according to reports from several sources, including Agence Ecofin, for the upcoming 2026-2027 campaign.
Key Provisions of the Scheme
- A premium of 10 FCFA per kilogram will be granted to cotton producers when national production exceeds 700,000 tonnes.
- The same premium will be offered to producers of other agricultural products, provided they deliver their products to local processing units, within the available industrial capacity limits, which are:
- 200,000 tonnes for cashew
- 450,000 tonnes for soybean
- 350,000 tonnes for rice
Objectives of the Scheme
The measure aims to:
- Encourage local transformation of agricultural products
- Better structure the value chains in the concerned sectors
Broader Context
This initiative is part of Benin's strategy to strengthen its agricultural sector, a pillar of the national economy, by:
- Creating added value
- Securing producers' income
- Developing the agro-industry
This move is expected to have a positive impact on the country's agricultural sector and economy as a whole.
