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New minimum price for seed cotton rises from 25 to 33 MT/kg

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The government approves the minimum purchase price for seed cotton to be in force in the 2021|22 agricultural year, as well as a price stabilization mechanism based on a proposal put forward by cotton producers and development companies.

The new price was the result of a negotiation process between the cotton producers represented by the National Cotton Producers Forum (FONPA) and the development companies represented by the Cotton Association of Mozambique (AAM). The consensus of the parties on the price to be applied was reached during the minimum price negotiation meeting led by the Minister of Agriculture and Rural Development.

With the new price agreed, 150,000 families are expected to see an increase of around 35% in their income this season, compared to last.

On that occasion, the negotiating parties also agreed to create a Stabilization Mechanism for the price of seed cotton to hold back sudden price rises in each campaign, in order to compensate for sudden falls in subsequent campaigns. A savings fund of around 180 million meticais is planned for this campaign.

The minimum cotton prices and the respective stabilization values approved for the current 2021|22 marketing year were:

  1. Top quality seed cotton: 33 MT/Kg;
  2. Second quality seed cotton: 23 MT/Kg;
  3. Cotton ginning fee: 8 MT/Kg;
  4. Stabilization value: 5.5 MT/Kg of top quality cotton e;
  5. Stabilization value: 4.7 MT/Kg of second quality cotton.

Category: Cotton

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