The Mozambican government has set the minimum price for a kilo of first-grade cotton at 10.5 meticals (US$0.38) and second-grade cotton at 8 meticals, the spokesman for the Council of Ministers said in Maputo Tuesday.
These prices are 30 percent lower than minimum prices for 2011 when first-grade cotton and second-grade cotton were sold at 15 meticals and 11.5 meticals per kilo, respectively.
The difference was explained by spokesman Alberto Nkutumula saying that cotton prices on the international market had dropped from US$4,550 per ton in 2011, to a current price of US$2,000.
The drop in the price of cotton may lead farmers to grow other more profitable crops as their proposal to keep 2011 prices unchanged was rejected by the companies buying the product. (macauhub)