Mozambique: Government stops subsidizing cotton prices in present agrarian campaign

Published 2021년 6월 1일

Tridge summary

The article highlights a significant development in Moçambique's agricultural sector, focusing on the successful negotiation between farmers and cotton companies to maintain a fair price for seedcotton, without the need for government subsidy for the first time since a substantial 240 million meticais investment last year. This achievement, following intensive discussions facilitated by the government, demonstrates a successful collaboration that has not only led to the sector's growth, with cotton production seeing a remarkable increase of 75%, but also positively impacting 150,000 families of small farmers by providing steady income and doubling fiber exports, generating over 70 million meticais in state revenue. This significant progress underscores the potential for sustainable economic development in the agricultural sector, with plans in place to expand the Cotton-Sustain program and ensure a stable reference price for the future. The collaboration between stakeholders has been praised for its results and efficiency in overcoming challenges, marking a milestone in Moçambique's agricultural history.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The government no longer subsidizes the price of seedcotton in this agrarian campaign, unlike the previous one, in which, in an unprecedented way, it invested 240 million meticais to guarantee the maintenance of the minimum price. The information was shared by the minister of Agriculture and Rural Development, Celso Correia, in Netia, Monapo district, Nampula province, after the cotton companies had guaranteed that they would be responsible for maintaining the price of 25 meticais per kilo in the current campaign. “This year, due to the good performance, a price subsidy by the Government will not be necessary. We want to congratulate the parties involved and, once again, make reference to the level of organization that allows for a dialogue oriented towards results”, said the minister. Consensus was reached after negotiations between producers and development companies, brokered by the Government. The price of 25 meticais per kilo was proposed by the producers, through the ...

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