Government Subsidies Spur Huge Increase in Malawi’s Production

Malawi’s cotton production for the 2012 season could rise more than threefold as a result of government subsidies this year, jumping to more than 200,000 tonnes of lint for the current season. The total production from last year (the season ended in July 2011) was only 55,000 tonnes, according to Bloomberg.

Part of the boom is due to an increase in yields, but the doubling of planting space is the primary driver. Last season, cotton was planted on about 200,000 hectares (ha), but that number exploded this year to 400,000 acres. The majority of the new 200,000 ha is land upon which cotton had never been planted before.

The government provided nearly $10 million in cotton subsidies to growers in an attempt to reduce its reliance on tobacco, Malawi’s top cash crop. Cotton is the fourth-largest cash crop, following tea and sugar. As the world continues to reduce smoking, Malawi is making an effort to diversify its agriculture-related income, according to the country’s president, Bingu wa Mutharika.