The Government of Mozambique, a country in southeastern Africa, has increased the minimum price paid to farmers by more than 50 per cent for the 2016-17 agricultural season.
The minimum price has been raised based on a proposal presented by cotton growers. For Mozambique, cotton is the third largest export earning commodity after coal and shrimps.
For first-grade cotton, the minimum price has been increased from about 22.5 US cents per kilo to about 35 US cents per kilo, Mozambican media reported quoting Cabinet spokesperson Mouzinho Saide.
Likewise, for second-grade cotton, the minimum price has now been raised from 16 US cents per kilo to 24 US cents per kilo, the reports said.
Mozambique has set a target to increase cotton production to 200,000 tons by 2020, compared to the current output of around 70,000 tonnes a year.
Source: Fiber2fashion