– Second-grade cotton price falls by 6.5 Meticais/Kg
– Drop may be offset by state subsidies or could further worsen producers' economic hardship
By Noémia Mendes
Maputo (MOZTIMES) – The Government of Mozambique approved on Tuesday the minimum purchase prices for seed cotton from producers for the 2024/2025 farming season, significantly reducing the rates compared to the previous campaign (2023/2024).
Under the new pricing table, the price for first-grade seed cotton has been set at 22 meticais per kilogram, down from the previous 30 meticais/Kg. The price for second-grade cotton has dropped from 22 to 15.50 meticais/Kg. In the previous campaign, these prices benefited from a state subsidy of 5 meticais/Kg for first-grade cotton and 4.50 meticais/Kg for second-grade.
So far, the Government has not announced whether subsidies will be maintained or introduced for the current campaign.
The ginning rate has been fixed at 6.50 meticais/Kg, compared to the previous 7 meticais/Kg.
The new prices resulted from agreements reached in negotiations between the National Forum of Cotton Producers (FONPA) and the Mozambican Cotton Association (AAM), with mediation from the Ministry of Agriculture, Environment, and Fisheries.
Cotton remains one of Mozambique’s main cash crops, especially in the central and northern provinces, where it plays a key role in family livelihoods and in boosting local economies. Around 150,000 smallholder farmers are involved in cotton production, with an average annual output of 50,000 tonnes and the creation of approximately 30,000 jobs, both permanent and seasonal. Mozambique has an installed ginning capacity of up to 250,000 tonnes per year, underscoring the sector’s growth potential.
However, producers remain dissatisfied with the prices being offered, prompting the Government to adopt compensation measures, including the introduction of subsidies. (NM)
