Maputo, 29 May (AIM) – The Mozambican government has established the minimum purchase price for seed cotton from producers and the ginning fee, as well as the seed cotton price subsidy.
These measures will come into force during the 2023-2024 agricultural campaign.
According to government spokesperson and deputy minister of Industry and Commerce, Ludovina Bernardo, who was speaking minutes after the end of Tuesday’s meeting of the Council of Ministers (the Cabinet), in Maputo, a kilo of top quality seed cotton will now cost 30 meticais (46 US cents, at the current exchange rate).
Last year’s price was 25 meticais. Hence the producers will earn 20 per cent more for top grade cotton than they did in 2023.
“The price of second quality seed cotton rises by 4.5 meticais per kilo, bringing the minimum price from 17.5 meticais to 22 meticais”, said Bernardo”, she said.
At the same session, the Council of Ministers approved the revision of the Value Added Tax (VAT) refund regulations.
According to Bernardo, the government will limit the scope of the special VAT regularization regime in order to maximize control of the operations carried out by the mining and oil sectors, as well as maximizing the VAT revenue from those operations.
(AIM)
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