Cotton output set to drop-Board By Prosper Makene The Tanzania Cotton Board (TCB) has forecast a drop in this year’s cotton output due to fall in cotton prices as well as farmers missing support from contract farming last year. Speaking with The Guardian in an exclusive interview in Dar es Salaam, TCB acting director Gabriel Mwalo said cotton farmers have been demoralised by the low price offered in the previous season, which were lowered from 1,100/- per kilo in 2011/12 to 660/- in the 2012/13 season. Mwalo said although prices this season have risen from 660/- to 750/- per kilo in the first week of buying, but production will be low. “Cotton farmers have been so demoralised by the low prices that some of them have quit cultivating the crop and that is why we believe that this year’s production will not be good compared to the last season,” he said. He added: “Cotton is a cash crop. The farmers cannot eat it, and ever since its price went down, some of them shifted to cultivating other crops… There is nothing we can do since the price is determined by the world market,” he said. He underscored that China and USA are the largest producers of cotton who always control the world market of which last year China stored a large cotton stock with the aim of controlling the market. “To ensure that our farmers continue receiving attractive prices for their crop, we must stop exporting unprocessed cotton and instead export clothes and fibres,” he said. He noted: “Last year many farmers did not get the services from contract farming for different reasons, but TCB believes that the scheme has enabled farmers to get fertiliser and extension services,” he said. He however, disclosed that after the fall of the prices in the previous season, those engaged in contract farming were not affected as they worked with ginnery owners to give them credit in form of fertiliser which would be deducted when they sell their cotton. SOURCE: THE GUARDIAN
Posted on: Fri, 19 Jul 2013 17:55:29 +0000
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