Groundnut price stabilization measures in Senegal : Paper submitted by the Government of Senegal

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E/CN.14/STC/CS/l9 21 August 1962 Original: FRENCH

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GROm~DNUT PRICE STABILIZATION j~EIA3UlL:;S IN SENEClA1 (Paper submitted by the Government of Senegal)

Note by the Secreteriat

This peper wes submitted in ros~onse to a note by the ~xecutive

Secretary inviting participating governments to contribute papers on topios inoluded in the provisional agenda.

62-206)

E/CN.14/STC/CS/19

GROUlJDNUT PRIC'; ST,illILI:.;....TIGN !'I&..SURES I. Equalization of Zxports

The export of shelled Senesalese groundnuts is governed by a

bilateral agreement on pri cos and quanti ties ^with the French government.

Depending upon the size of the crop, Senegal m~y be obliged to export outside the franc area, particularly if local m2rketable stocks exceed the Quota granted by Franco.

A Caisse de Stabilisation des ?rix des ar~chides (Groundnut Price Stabiliz8tion Fund) was ost~blishod in S,neg~l in 1958, and proved efficacious in the "surplus" crop/se3son of 1951/1958 and in following seasons.

The purpose of this Fund is to ensure guar ant oed domestic prices to producers by supporting the price - generally lower than the price

guaranteed by P'ran ce - of shelled groundnuts exported outside the franc area, (The guar un te ad produccrs' prices, vha ch differ from place tc place,

arc caloulated On the basis cf the price guar~nteed by France).

The resources of the Fund ^81'0 derived from a duty paid by all exporters of oil and shelled gruundnuts, a s follo.,s:

CFA frs. 1,224 per ton of shelled croundnu ts exported.

CFA frs. 2,644 per ton of crude oil 8xported.

The Fund also derives rGvenU3 from a bonus of 1/6th of the export duty levied On shelled groundnuts 3nd exported oils, 3S follo.,s:

CFA frs. 165 per ton of gruundnuts exported.

CFi, f'r-s , 1,400 per ton of crude oil cxpor^ted ,

The Caisse de StiObilisc.tion (St"'bilize.tion Fund) pays expo r ^ter-s of shelled gruundnuts the d'if'far-en ce be twe on the French guer cn tcod price and the price obtained On the world m~rket.

There was no reQson for the Caisse de Stabilisation to intervene in 1961/62 because the wholo of the groundnut crop was exported to the French mar-ket ,

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E/CN.14/STC/CS/19 Page 2

On 1 October 1962, the Government grdnted the Office de Commercialisation Agricole du Senegel (~enegalese Agriculturdl M~rketingBoard) - which

is responsible for the management of the Caisse de Stabilisation des Arachides (Groundnut Stabili~ationFund) - the monopoly of shelled groundnut exports.

Three quarters of the unspent annual revenue of the Caisse de

Stc,bilisc:tion are used to finance th" Fonds .rutue L de Dcve l cppem ent Rural (l,iutual Hural Deve Lopm ent Fund ) which is res~onsible for using all

possible medns (subsidies and bank guarantees) to promote the production of groundnuts 2nd foodstuffs in Senegal.

II. Equalization of Transport Custs

The prices guaranteed to producers v~ry from place to place depending upon distance from the nenrest port. In other words, the further the producer is from the port of embarkation the lower the guaran teed pri ceo

It follows that" transport "dif:ferential", calculated On the basis of actual prices aft cr the most econoraic moans of transport (rail, road or river) has be~n determined, is applied to the price of groundnuts in shells.

Since the current d'i f'f'ar cnti c Le .rero decided in 1955 - since when transport costs have risen - the Governmont of Senegal established e

Caisse de Perequation des Transports (Transport Equalization Fund) in 1959 to offset the effects of the rise in costs for people in the furtherest

production areas who, bGc~uSG of the withdrawal of private carriars, ran

the risk of being depri v e d of the n e c es ear-y means of evacuating their produce.

The revenue of this Fund is derived from a duty paid by all exporters of oil and shelled groundnuts, as follows:

CFA frs. 429 per ton of shelled gTOundnuts exported.

CFA frs. 926 per ton of crude oil exported.

The Ceisse de Pcrequation (Equdlization Fund) pays all persons collecting groundnuts in outlying dreas and delivering them to tho oil mills and

"shelling" plants a tre.nsport indcmni ty '.hich varies according to distance.

N.B. The Caisse also pays a "shelling" indemnity to those plants which process groundnuts in shells from the T~meaccw1dG Gre3 where the seed output is known to be lower th~ in other areas •