Efforts to resuscitate the Malawi cotton industry have remained futile for over a decade witnessed by a downward trajectory in both production volumes and earnings from the crop.
Authorities and stakeholders alike have miserably failed to replicate models implemented in 2012, which saw the country producing a record high 100,000 metric tonnes (mt) of cotton.
For instance, volume of earnings from cotton took a sharp fall in 2023 as output dropped by 48 percent, with the value facing a 41 percent slump.
Recent figures from the Cotton Council of Malawi (CCM) indicate that the country produced 10,000mt this year, a fall from the 19,500mt produced last year.
The figures further show that growers earned an accumulated K5.9 billion this year from K10 billion last year.
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However, prices of the commodity rose by 24 percent and closed at K720 per kilogramme (kg), higher than the K580 per kg farmgate price announced by the government at the start of the marketing season.
Production of the crop in Malawi dates back to the 17th century. However, in the mid-1990s to 2000s, the government supported cotton production through Admarc as the de-facto supplier of cotton inputs and buyer of the crop from farmers on contract basis.
This ensured that farmers got inputs on time and the investment was easily recouped. In those days the country used to produce at least 50,000mt of cotton, according to CCM.
It further indicates that around 250,000 farmers enjoyed the fruits of producing the crop but today around 30,000 farmers are still growing cotton.
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In the 2000s, a liberalised market for cotton was introduced and volumes slightly increased to around 60,000mt.
The liberalisation of the market saw private investors coming in to support the sector. However, there were no sustainable means of recouping the investments in the sector.
This led to loss of investments through side buying and side selling activities leading to closure of business by those who failed to recover their investments. The trend continued from 12 ginners to four active ginners at present.
Chief Executive Officer for Africa Institute for Corporate Citizenship (AICC) Drian Luwanda believes that the situation has been perpetuated by low cotton prices, competition from other crops, climate change and erratic weather patterns and limited market access.
She said fluctuating global cotton prices have affected the profitability of cotton farming such that farmers in Malawi have shifted their focus to other crops, such as sesame and soya, which have proven to be more profitable.
“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. Unfavourable weather conditions have led to crop failure and reduced yields.
“Similarly, the lack of well-established marketing channels and limited access to international markets have hindered the growth of the cotton sector in Malawi. This has resulted in limited opportunities for farmers to sell their cotton at competitive prices as ginners continue to withdraw from Malawi,” Luwanda said.
She added that addressing the challenges requires a multi-faceted approach, including investment in research and development, improved access to inputs and credit, strengthening of market linkages, and implementation of climate-smart farming practices.
Luwanda indicated that AICC is working with the CCM and as chair of the East and Southern African Cotton Organisation to develop the seed industry and tap the expertise of other countries to support research and development.
CCM spokesperson Prisca Jamali concurred with Luwanda saying the country has relied on hybrid seed imported from India which resulted in limited access and affordability by farmers despite being high yielding.
She said limited access to the seed has drastically reduced the number of farmers over the years to 40,000 and the area under cotton cultivation from 150,000 hectares (ha) to 25,000 ha.
“Our local varieties and those from the region require improving. The Council is, therefore, working hand in hand with East and Southern Africa Cotton Cooperation (Esaco) and Department of Agriculture Research and Extension Services (DARS) in introducing new varieties, improving our local varieties and local seed multiplication. This is a move to provide several options for farmers in the choice of seed.
“The council is also engaging medium to large scale farmers for increased seed cotton volumes in the country. In addition to this, growing of cotton under irrigation is now allowed and has been demonstrated and is supported by subsidiary regulations governing the sector. In a move to increase production cotton is being introduced in non-traditional cotton growing areas in the country such as Kasungu, Mnchinji, Rumphi and Mzimba among others,” Jamali said.
She added: “The council has also set a minimum investment of 5,000ha for every investor supporting cotton production and marketing on contract farming. This will reduce free riding, increase volumes of cotton as well as levies collected by the council for sustainability of the cotton sector.”
Cotton is touted as one of the country’s cash crops after Tobacco, tea and sugar.
When all said and done there is hope of restoring the lost glory of the crop to make a meaningful contribution to Malawi’s economy if the necessary stakeholders take the right action.
