As a way of stimulating the subsector and safeguarding the income of more than 120,000 cotton-producing families, the government has decided to subsidize the minimum price of cotton by 7 MT/kg, setting the minimum purchase price for producers at 33 MT/kg.
This decision is the result of the consensus reached at the meeting held on May 11, led by the Minister of Agriculture and Rural Development, Celso Correia, to negotiate the minimum price for seed cotton between the negotiating parties in the process, namely the National Forum of Cotton Producers and the Cotton Association of Mozambique. This meeting enabled a consensus to be reached on the price to be applied to the marketing of seed cotton in the current campaign 22|23, and at the time it was decided to maintain the price practiced in the previous campaign.
At the time it was concluded that there was a need to maintain the price, by applying a subsidy to stabilize the price
The decision to subsidize the price in order to maintain it in relation to the previous campaign is justified by the need to help producers continue to increase production and productivity levels, increase the income of producer families and contribute to the balance of payments.
It should be noted that in the previous marketing year the Government approved the creation of a Stabilization Mechanism for the price of seed cotton to prevent sudden price rises in each marketing year, in order to compensate for these fluctuations in subsequent marketing years.
Thus, the minimum prices for cotton and the respective stabilization values approved by the Council of Ministers for the current 2022|23 marketing year are set at:

1. Top quality seed cotton: 33 MT/Kg;
2. Second quality seed cotton: 23 MT/Kg;
3. Cotton ginning fee: 8 MT/Kg;
4. Premium cotton subsidy: 7 MT/Kg e;
5. Subsidy for second quality cotton: 4.8 MT/Kg.

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