The producer price of first grade raw cotton will remain at 23 meticais (about 38 US cents) a kilo during this year’s cotton marketing campaign, which ends on 30 September.

The decision to retain the current price was the consensual decision reached at a meeting on Thursday in the northern city of Nampula between the National Forum of Cotton Producers (FONPA), which represents cotton farmers, and the Mozambique Cotton Association, which brings together the concessionary companies that buy the farmers’ cotton. The meeting also fixed the price of second grade cotton at 16.5 meticais a kilo.

Agriculture Minister Higino Marrule, who accompanied the negotiations, described the consensus as “a solid basis” for future work.

“Although it is far from ideal, the present price proposal is a solid basis to balance the interests of the parties involved, and for the sustainability of the business across the entire cotton value chain”, said Marrule.

The Minister pointed out that the agreement only covers the minimum price. Any company able to pay farmers more than the minimum is free to do so.

The chairperson of the National Forum, Jose Domingos, said his organisation had proposed raising the price to 24 meticais a kilo, but had eventually accepted keeping the old price.

“We think it was a reasonable discussion”, he told reporters, “and the understanding reached to some extent satisfies FONPA, since the proposal from the companies was even lower”.

The President of the Cotton Association, Francisco Ferreira dos Santos, also found the final agreement acceptable, even though the Association had proposed to cut the price to 22.75 meticais a kilo.

This year’s marketing campaign target is 80,000 tonnes of raw cotton – more than double the 35,000 tonnes marketed in 2017. Dos Santos thought this target was perfectly achievable since the amount of land sown with cotton has risen from 114,000 to 187,000 hectares, and the number of farmers growing cotton has increased from 170,000 to 227.000.

The proposed prices are still subject to approval by the government.

Source: AIM