Rise in price of raw cotton in Mozambique to boost production

4 November 2010

Maputo, Mozambique, 4 Nov – The price of raw cotton in the 2010/2011 campaign may be 10 meticals per kilo, under the term of a pre-agreement reached a few days ago between producers and cotton companies, according to a report in Mozambican newspaper Notícias.

The new price list, which will benefit producers and boost production, was agreed between representatives of the National Forum of Cotton producers (Fonpa), cotton companies united in the Mozambican Cotton Association (AAM) and partners.

During a meeting organised by Agriculture minister, José Pacheco, the sides agreed the new list would be definitively updated in April 2011, when the sides enter a new round of negotiations for setting a minimum price to be approved by the government.

During the meeting, Pacheco warned those present of the cause of the drop in cotton prices, as well as the need to intervene in this situation, particularly at a time when the international price of cotton is attractive.

Amongst the reasons given for the drop in cotton production in Mozambique is the low competitiveness of the product in relation to other crops, its climate feasibility, poor services for producers, poor support for the development of new technologies to increase production areas such as good farming practices, use of animal traction and tractors.

The campaign that is now beginning is expected to see production of 70,000 tons of cotton, which is more than was produced in the previous campaign. (macauhub)