Uganda earns $35 million in cotton exports

The cotton sector earned Uganda about sh60b($35 million) in exports in the last financial year, an official has said. The export of cotton lint fetched $30 million, while the cotton seed for oil and animal feeds brought in $5 million.

Briefing the parliamentary committee on agriculture, Jolly Sabune, the managing director of the Cotton Development Organisation, said the organisation generated 6,865 metric tonnes from the 28,000 acres of the BPA 2002, which is the latest seed variety. "Due to strict quality control to match international standards, the quality of Ugandan cotton has greatly improved, making it possible to regain our premium on the international market," said Sabune. She, however, regretted that only sh2.2 billion ($1.3 million) of the required sh5.1 billion ($3 million) in this year's budget had been approved.

Sabune observed that farmers in the north, West Nile and Pallisa districts had switched to organic cotton production. She was concerned that the premiums on organic cotton were likely to decrease with the increase in production from larger producing countries like India, USA, Turkey and Portugal.

Sabune also called for the elimination of subsides offered by developed countries to their cotton sectors. She urged the government to partner with the World Trade Organisation to establish a price stabilisation fund. Sabune also advised the Government to set up credit lines through banks for farmer groups to set up mini-ginneries or contract gins, so as to benefit from the sale of cotton lint and seeds.

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