Seed cotton price is no longer subsidized in Mozambique

Published 2021년 5월 31일

Tridge summary

The article highlights a significant development in Moçambique's agricultural sector, with the government's decision to cease subsidizing seedcotton prices for the current campaign, thanks to a 75% surge in cotton production. This increase has supported around 150,000 families of small farmers, leading to doubled fiber exports and expected state revenue of over 70 million meticais, compared to 21 million meticais in the previous year. The new pricing consensus of 25 meticais per kilo was achieved through negotiations between producers and development companies, with the government acting as a mediator. This success underscores a positive turn in the cotton industry, marking a milestone in agricultural productivity and economic growth for the country.

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Original content

The GOVERNMENT ceases to subsidize the price of seedcotton in the present agrarian campaign in the country, unlike what happened in 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, there will be no need for a price subsidy by the Government. 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 ...

Source: Jornalnoticias