Maputo, 17 May (AIM) – The Mozambican government has approved the minimum purchase prices of seed cotton, the cotton ginning fee and the minimum purchase price subsidy for seed cotton producers.
The decision was taken on Wednesday during a meeting of the Council of Ministers (Cabinet), in Maputo.
“The Executive fixed 33 meticais (about 52 US cents, at the current exchange rate) per kilo for first quality seed cotton, and 23 meticais per kilo for second quality”, says a note from the Secretariat of the Council of Ministers, adding that the prices will take effect in the 2022/2023 agriculture season.
The government has also fixed a price of eight meticais per kilo of cotton, as the fee for ginning seed cotton, as well as a subsidy of seven meticais per kilo for first quality seed cotton, and 4.8 meticais per kilo for second quality seed cotton.
The Ministry of Agriculture and Rural Development decided last week to keep the price of seed cotton at the same levels as in the 2021/2022 season, as a way of stimulating producers to increase cotton production.
The Minister of Agriculture, Celso Correia, said that the maintenance of the seed cotton price also aims to safeguard the producers’ incomes.
The minimum price was negotiated at a tripartite forum between the government, the National Forum of Cotton Producers (FONPA) and the Mozambican Cotton Association (AMM), which consists of the companies that purchase cotton from the farmers.
The AMM had wanted to cut the producer price of cotton to 27 meticais a kilo, while FONPA was resigned to a reduction to 30 meticais a kilo, and was thus pleasantly surprised when the meeting opted to keep the price at 33 meticais a kilo.
(AIM)
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