Only four companies licensed to buy cotton in 2022
The Cotton Council of Malawi (CCM) has disclosed that only four companies have been licensed to buy cotton this year.
Conspicuously missing on the list of the licensed companies is state-funded Agricultural Development and Marketing Corporation (ADMARC), which has been a traditional buyer of the crop.
CCM Executive Director Cosmas Lwanda, who briefed journalists in Lilongwe on Friday, said ADMARC will not buy the lint this year because it did not invest in cotton production through support to farmers.
Lwanda stated that the licensed companies are expected to buy the lint at a government set minimum price of K400.
“This price has been derived through a rigorous consultative process with industry stakeholders taking into account the cost of production and the prevailing international market prices,” he said.
Lwanda assured that the council will work hard to protect growers from unscrupulous traders/middlemen, who offer lower prices to farmers, aggregate seed cotton and sell to ginners at higher prices.
He said they will also work to protect ginners’ investments by ensuring that all farmers that got loans ginners pay back their loans.
Head of Programmes at the African Institute of Corporate Citizenship (AICC), Leonard Chimwaza, said despite facing various challenges, the cotton sector has huge potential to contribute to the economy of Malawi.
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