There are mixed feelings among stakeholders in the cotton industry over the start of this year’s selling season.
Farmers have lamented delayed payments under the newly introduced digital system.
It has transpired that since the opening of the cotton marketing season on June 7, 2025 about 4 million kilogrammes of the crop have been sold, realising on average K4.8 billion in revenue.
In an interview, Cotton Farmers Association President Lapson Zidana said the performance of the cotton market presents a mixed bag, with positive developments in market accessibility but concerns over pricing and payment systems.
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He expressed disappointment with pricing trends, noting that buyers have maintained the government-set minimum price of K1,200 per kilogram since the market opened.
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“On one hand, we are excited about the markets that have been established which have made it easy for farmers to sell their cotton to the buying companies and we have seen that the sales are progressing very well and fast.
“On the other hand there is no excitement on the part of prices because usually when the market opens we would see prices increase beyond the government set minimum price. This year the buyers have complained that global cotton market trends have made it impossible for them to consider any price adjustments,” Zidana said.
He also raised concerns about delayed payments to farmers due to the digital system introduced this year.
Cotton Council of Malawi Chief Executive Officer Cosama Luwanda said the cotton marketing season is progressing well, describing the digitalisation of cotton marketing as a historic first for Malawi’s cotton industry.
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He said the system aims to protect farmers from unscrupulous buyers, reduce loan defaults, and completely deter side buying and selling.
Luwanda acknowledged that the reform process has faced significant challenges in its first year of implementation.
“The ultimate objective is to de-risk the cotton sector and attract increased production investments that will spur consistent and high levels of cotton production.
“There have been technical challenges affecting payment processing, particularly difficulties some farmers face in opening bank accounts for receiving money,” Luwanda said.
Luwanda said wrong entries of account numbers and phone numbers for payment of cotton proceeds have also created problems with payment delays.
He noted that the system has eliminated most vendors and other beneficiaries who previously profited from farmers’ labor, and these groups have attempted to fight back by misinforming farmers to reject the system.
