Cotton farmers are now to smile all the way to the bank whilst the country’s forex is to be boosted with the opening of cotton market whuch will run for 90 calendar days, Cotton Council of Malawi(CCM) has disclosed.
CCM chairman Cosmos Luwanda said the buying price is K375 per kilogram which is last year’s price.
Luwanda said there are 199 cotton markets across the country.
The cotton farmers are expected to sell 24 metric tonnes of the cotton which is available this year.
Liwanda said K20 out of the K375 per kilogram the cotton farmers will realise will go towards cotton development fund.
“The minimum price for seed cotton for 2019 marketing season is K375.00/kg. The price has been arrived at through a rigorous consultative process with industry stakeholders taking in to account the cost of production and prevailing international market prices,” Luwanda explained.
He said the price has not change last year, farmers were selling their seed cotton despite that cotton at international markets have gone down.
Luwanda said cotton farmers would be deducted K20.00/kg to contribute to Cotton Development Fund and this means that growers would expect to take home price of K350.00/kg.
He added that CCM has passed regulations to guide cotton marketing in order to properly regulate the function of the market and protect the interest of seed cotton growers and buyers alike.
“Pursuant to the provisions of Cotton Act 2013 (45),buying of seed cotton will only be done at centres designated by CCM. Any cotton buyer who contravenes this order commits an offence under CottonAct, 2013. Only licensed cotton buyers will be allowed to buy seed cotton,” he said adding that, “any person found buying seed cotton at anon-designated place without buying license, commit an offence under the cotton Act, 2013.”
The opening of the cotton market comes just days before the top foreign exchange earner, tobacco markets, open.Follow and Subscribe Nyasa TV :