The tag of war between the Agricultural Development and Marketing Corporation (Admarc) and the Cotton Ginners Board has taken a new twist with Admarc saying the Board does not have any legal mandate to operate in the country.
The Cotton Ginners Board recently accused Admarc of operating as a parallel structure and making unilateral decisions when setting buying prices for cotton.
But Admarc Chief Executive Officer, Foster Mulumbe, says Admarc does not even recognise the existence of the Board as it was supposed to disband after the establishment of the Malawi Cotton Council.
“What you should know is that as a precursor to Malawi Cotton Council, there was Cotton Ginners Association which was working in the sector awaiting the establishment of the Malawi Cotton Council. So, one would believe that the moment the Malawi Cotton Council came into being, that grouping was supposed to disband and we are surprised that they are still active,” said Mulumbe.
Mulumbe further said Admarc is not breaching any requirements when setting cotton prices as the body does not need to consult before deciding on the buying prices.
“We are buying grade A cotton at K375 per kilogramme and grade B at K295 per kilogramme which are the minimum prices set by the cotton council,” he said.
Admarc has three ginneries located in Salima, Karonga and Chikwawa.