The price of cotton, which used to be marketed at 25 Meticais per kilo, will now be sold at a price of 33 Meticais. The information was advanced by the Minister of Agriculture and Rural Development during the meeting to negotiate the minimum price of that crop.

This year, the Ministry of Agriculture and Rural Development was the stage for the negotiation of the minimum price of seed cotton, which brought together, at the same table, producers, development companies, and the government.

The producers, through the National Forum of Cotton Producers (FONPA), presented the proposal of 35 Meticais per kilogram, but the businessmen, represented by the Cotton Association of Mozambique (AAM), proposed 30 Meticais. It was up to the Government to create a consensus between the parties.

"Because we are thinking smart, and the producers also have experience, we are thinking in a middle ground. We entered this negotiation room with a price of 35 and 30 Meticais per kilogram. However, it was agreed at the last second, after much reflection, the price of 33 Meticais per kilogram for this agrarian campaign", informed Celso Correia, Minister of Agriculture and Rural Development.

Two years ago, there was a similar agreement for new minimum prices, at a time when the cost had dropped dramatically and some companies were considering abandoning the purchase of the product. Thus, the government decided to inject 240 million Meticais of subsidies to the companies, guaranteeing their continued connection with 150 thousand family producers, equivalent to about 800 thousand people.

The impact of the Executive's intervention for the economy was positive. The deal generated $20 million, $50% of which was by direct cash-in from producers and $10%, representing two million US dollars for logistics companies.

"The logic of subsidies, applied in other geographies, had the effect," stressed the Minister of Agriculture and Rural Development, quoted by the national press. This policy will continue, given the positive impact of this sector, an export culture of excellence, in the balance of payments and trade balance.

With the new price agreed upon, the ruler said that seed cotton producing families will be able to increase their income by 35%.

"Today, two years later, we have a historic situation, because the price of cotton has reached one of the highest exports in the last 50 years.

This new price comes at a good time, because Mozambique is also facing the crisis that other countries are. So, knowing that 150 thousand families, close to a million Mozambicans, will have an income above 35%, compared to last year, is very good news for the country", emphasized Celso Correia.

Currently, cotton production involves about 200,000 producers, six cotton companies, generating about 30,000 jobs along its value chain, and has 13 seed cotton ginning plants, with installed processing capacity of about 250,000 tons per year.