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| Govt to announce maize, cotton prices |
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by
Taonga Sabola, 04 May 2006
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04:38:39
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Government says it has finalised working on the process of deciding new prices for maize and cotton and that it will release them for implementation this week.
Agriculture and Food Security Minister Uladi Mussa said in an interview on Tuesday that once released, all produce buyers will be expected to buy from farmers either at the set prices or above.
The new prices, once implemented, will likely spell an increase in the purchasing price of maize at Admarc markets currently selling at 17 per kilogramme.
He said maize is expected to attract a price of above K17 per kilogramme, saying the prevailing price is below the cost of producing the crop.
On his return from a visit to Taiwan a month ago, President Bingu wa Mutharika said government will from this year be floating minimum prices at which its strategic crops like tobacco, maize and cotton will be bought.
The idea of having minimum set prices is currently facing hurdles, especially in tobacco where it has already been implemented.
Government set US$1.10 (K148.50) as the minimum price for buying the lowest grade of tobacco and US$1.70 (K229.50) as the minimum price for top grade tobacco.
Mussa said government will try to ensure that nobody buys below the set price saying doing that is exploiting the farmers.
Minister of Trade and Private Sector Development Martin Kansichi told a gathering of cotton buyers in February this year that government will take no excuses for any low prices offered this year because research has shown rising cost of producing the crop from K18 last year to between K22 to K23 this year.
The Malawi Growth and Development Strategy (MGDS) has earmarked cotton as one of the potential crops to contribute to the growth of the economy.
Kansichi warned that if cotton prices will not improve this year, government will be forced to bring in some ginneries and set up cooperatives to influence some people to buy the cotton.
He said low cotton prices have been a headache to government hence its decision to meet the buyers before the start of the buying season.
Cotton sales were marred by incidents of smuggling as farmers felt prices offered by local buyers were too low compared to those offered across the borders.
In countries like Mozambique and Zambia, cotton was fetching an average price of K35 per kilogramme while the local market attracted an average price of K25 per kilogramme.
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