Cotton buyers resist new Malawi floor price

Cotton buyers in Malawi have stopped buying from farmers in reaction to government's directive to increase the price. Government announced in late April that cotton buyers should purchase the crop at not less than 40 Malawi Kwacha (US30 cents) per kilogramme, up from from the 2006 minimum price of K30.

Executive Director for the Farmers Association of Malawi, Bennito Elias, said the buyers boycotted purchasing cotton immediately after the new floor price was announced. "It is true the buyers have all stopped. They are saying the prices are a bit high considering that government also charges them tax. They are also concerned by the fact that farmers have been advised never to sell their cotton at lower prices. So there is a standoff until the two parties and government strike a compromise, and we hope this will be done very soon," said Elias.

He said the boycott will affect the livelihood of farmers who expect to have their cotton sold during this time. "For instance, Chikwawa farmers expect to plant winter crops and they need farm inputs, which are supposed to be bought with the proceeds from cotton sales. The farmers' life cycle will be affected and this is of great concern. We expect government to discuss with the buyers and find a solution," said Elias.

Washington Mbendera, a cotton grower at Namatunu area in Upper Shire, said farmers in the area were disturbed by the position taken by buyers. "These people always want to put us down. They want to make money on us. We spend quite a lot to grow cotton," he said.

Principal secretary in the ministry of agriculture Patrick Kabambe said government was aware of the development and would be meeting the buyers for discussions. " We need to hear why they have decided to stop buying cotton," said Kabambe, pointing out that there was no possibility of changing the price. "There is no way we can reduce the price really. They were agreed by Cabinet; the issue may have to go back to Cabinet," he said.

The Nation