Mozambique: Cotton subsidy to impact 600,000 people

Published 2024년 5월 23일

Tridge summary

Mozambique's government is set to subsidize cotton purchases to stabilize prices and benefit 600,000 farmers. The minimum price of cotton for the 2023/24 marketing year has been set at 30 meticais (€0.43) per kilogram, with the government covering part of the cost. This is in response to factors such as drought, production abandonment, and oversupply, which have affected cotton prices. The subsidy is part of a transparent mechanism aimed at boosting the national economy and enhancing the cotton sector, which accounts for less than 0.5% of global production. This mechanism, supported by the government and producers, aims to provide a subsidy that is simple, yet effective in addressing the challenges faced by the sector.

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Original content

Mozambique’s government is going to subsidise the purchase of cotton by five meticais (€0.07 per kilogram for the current season, stabilising prices and benefiting 600,000 farmers, as well as encouraging a “culture of trust”, said the minister of agriculture. “This price stabilisation and this subsidy that we are approving will affect around 100,000 families. We’re talking about a universe of 600,000 people who will have their income stabilised,” said Mozambique’s Minister of Agriculture and Rural Development, Celso Correia. The announcement was made during a meeting with representatives of the National Forum of Cotton Producers (FONPA) and the Cotton Association of Mozambique (AAM) as part of the platform that, in recent years, has been negotiating proposals for the minimum price for seed cotton and the ginning fee, based on the approved calculation mechanism. For the 2023/24 marketing year, a minimum price of 30 meticais (€0.43) per kilogram was set for the sale of cotton, ...

Source: Clubofmozambique