The proposal to increase the cotton producer price by more than four percent this year is awaiting cabinet approval. With the proposal to rise the producer price for the crop was mutually agreed upon by the Mozambican government, cotton buyers and associations of peasant farmers who grow cotton.
The move toward price rise in cotton crop is to encourage Mozambican cotton growers to increase their production. With the approval of the proposal, they would see an increase of 4.4 percent on cotton crop over the previous season, the minimum producer price of cotton will be pegged at 39 US cents per kilogramme for the 2014/15 season.
The farmers, represented by the Mozambican Forum of Cotton Producers, had demanded an increase of 7.1 percent that would have brought the minimum price to U$0.41cents per kg for the 2014/15.
But according the buyers the increase was too high and would not be at comfort as they were looking at a hike of not more than 0.5 percent.
The approved price of 4.4 percent although far from guaranteeing fair compensation for farmers for their hard effort but agreed at it that the formula used in calculating the minimum price does not permit any further increase to keep balance between farmers and buyers.
Agriculture Minister Jose Pacheco, acting as an intermediary in the discussions, reminded the buyers that the figure agreed, is only a minimum price. He has urged the buyers to pay more, in order to encourage the farmers to grow more cotton.
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