Cotton Farmers Association (Cofa), an umbrella body for cotton producers in the country, has said the K900 per kilogramme (kg) government-set farm gate price for the commodity does not reflect the high cost of inputs.
The farmers’ grower body says if buyers do not offer prices beyond the set minimum, most farmers would make losses.
The despair comes as the Cotton Council of Malawi (CCM) has set May 9 2024 as opening date for this year’s Cotton Marketing Season.
However, the minimum price has increased by 50 percent from K600 per kg last year.
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But in an interview Tuesday, Cofa President Lapson Zidana said the consolation is only in the fact that most farmers used recycled seed as they could not afford hybrid seed.
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“We had initially proposed a minimum price of K1,200 per kg while the buyers were insisting on K720 per kg. When we hit a deadlock, the regulator, Cotton Council of Malawi, came in and imposed the K900 price which we have accepted since they are the authority.
“Another problem we are facing is the low number of buyers on the market. There are only three buyers which take away competition and allow for exploitation by the buying companies but we as farmers are doing all we can to resuscitate the industry and will not relent despite these happenings,” Zidana said.
In a separate interview, agriculturalist Leonard Chimwaza said with the set minimum price, farmers might not make the most of their toil.
“This is a season in which farmers were affected by extreme weather conditions which means that they invested a lot.
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“They also were using recycled seed which means they had to apply a lot of chemicals for them to get the crop. On top of that they experienced 44 percent kwacha devaluation. They surely needed a cushion from the price for them to be able to produce next season,” Chimwaza said.
In an earlier interview, CCM spokesperson Prisca Jamali said cotton production this year is expected to be similar to that of last year hovering around 10,000 metric tonnes (mt).
Last year farmers realised K5.8 billion after selling 10,000mt of cotton.
In a recent interview, Africa Institute for Corporate Citizenship (AICC) Chief Executive Officer for Drian Luwanda said the production decline has been perpetuated by low cotton prices, competition from other crops, climate change and limited market access.
“When prices are low, farmers receive less income for their cotton, making it less attractive to grow. This coupled with unreliable and high inputs costs, limited access to finance among farmers makes it more unattractive for smallholder farmers to continue producing cotton.
“Changes in weather patterns, including increased cyclones and unpredictable rainfall, have negatively impacted cotton production in Malawi. Unfavorable weather conditions have led to crop failure and reduced yields,” Luwanda said.
