Cotton farmers repay K700 000 out of K2bn loan obtained
Cotton experts are predicting lower cotton yields as most cotton farmers have not repaid a staggering K2 billion loan they obtained from ginners for farm inputs making them ineligible for such loans this year.
This comes at a time when tobacco prices are also down casting doubt Malawi will have enough forex to prop up the ailing economy.
Patrick Khembo of Cotton Council of Malawi confirmed most farmers will not grow much cotton this year because of outstanding loans with cotton ginners who provide loans for farmers for quality leaf.
“Some of these farmers were affected negatively by bad weather but others simply did not just want to repay,” he said.
Malawi has been hit by El Nino powered drought in southern region and floods in the north forcing President Peter Mutharika to declare Malawi a state of nation disaster.
Cotton Farmers Association chairman George Mnesa said this will force cotton volume to go down from 37,000 metric tones last year to 20, 000 metric tonnes this year.
He also said the industry is not profitable these years with cotton prices pegged at K200 per kilogram.
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