TN/AG/GEN/34/Rev.11/Add.3  
TN/AG/SCC/GEN/13/Rev.11/Add.3  
 
6 December 2019  
(19-8433) Page: 1/2 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton    
 
 COTTON  
BACKGROUND PAPER BY THE SECRETARIAT1 
Addendum  
This document contain s one additional  reply from Peru to the questionnaire on 
recent  policy  developments for cotton , which was circulat ed on 1 0 September  2019, and 
should  be read in conjunction with  Annex 4 of document TN/AG/GEN/34/Rev. 11/Add.1  - 
TN/AG/SCC/GEN/13/Rev. 11/Add.1 , which was circulated on 11 November 201 9. 
 
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Reply from Peru  
I.  Market Access  
Peru made no changes to its cotton -related policies concerning market access.  
 
II.  Domestic Support  
Cotton Financing Programme  
 
1.   Description of the Programme:  
 
The funding programme helps enhance the competitiveness of Peruvian cotton and boosts the 
cotton production chain through the provision of reimbursable loans to eligible small cotton 
producers forming part of producer organizations in the Pisco, Ica, Chinc ha, Cañete and Santa 
valleys.  
 
2.   Objective:  
 
Provision of loans to finance cotton farming for the purchase of inputs (seed, fertilizers and 
agrochemicals), machinery, labour, administrative costs and technical assistance.  
 
3.   Beneficiaries:  
 
Small cotton produc ers in the Pisco, Ica, Chincha Cañete and Santa valleys, through producer 
organizations (formally established cooperatives and/or associations), which, in addition, provide 
services relating to business management and technical assistance.  
 
                                                
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO. It has been prepared for 
information only and is not intended to provide any a uthoritative or official legal interpretation of the provisions 
of the WTO Agreements in general or in relation to any measure listed in this document.  TN/AG/GEN/34/Rev.11/Add.3 • TN/AG/SCC/GEN/13/Rev.11/Add.3  
 
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  4.   Duration:  
 
The programme runs from November  2018 to October  2019, in accordance with the planting and  
harvesting season in each valley.  
 
5.   Form of benefit:  
The Temporary Funding Programme for Agricultural Inputs, financed with resources from the 
AGROPERU Fund through AGROB ANCO, is intended for small producer organizations in the Pisco, 
Ica, Chincha, Cañete and Santa  valleys, for the purchase of inputs (seed, fertilizers and 
agrochemicals), labour, technical assistance and technical management support.  
The preferential rate for cotton producers is an annual effective rate of 12% for up to nine months 
for the Tanguis variety and up to seven months for the Hazera and IPA  59 varieties. The interest 
rate on loan arrears applied to this funding programme is 16% for all varieties.  
The programme has a budget of 5,000,000 (five  million soles), broken down as follows:  
Table 1: Budget breakdown  
Category  Amount  
(in soles)  Percentage 
(%) 
1. Campaign funding  4,750,605.00  95.01%  
2. Programme operational costs and technical assistance 
incentives  249,395.00  4.99%  
 TOTAL  5,000,000.00  100%  
Source:  Agricultural  Financing and Insurance Directorate, based on the Financing Programme for the 
2019-2020 Cotton Season - Agroperú Fund, Agrobanco . 
 
The amount of funding per hectare is 4,300 soles, with a maximum of four hectares per producer, 
broken down as follows:  
Table 2: Financing breakdown per hectare  
Category  Amount (in soles)  
Inputs: seed, fertilizers and agrochemicals  4,110.00  Services: labour, machinery and water  
Technical assistance  140.00  
Technical management support  50.00  
TOTAL  4,300.00  
Source:  Agricultural Financing and Insurance Directorate, based on the Financing Programme for the 
2019-2020 Cotton Season - Agroperú Fund, Agrobanco . 
III.  Export Competition  
Peru does not provide export subsidies for agricultural products, inc luding cotton.  
 
 
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