The Cotton Council of Malawi says the zero-deposit loan scheme to be rolled out this season will help to revamp the country’s dying cotton sector.
The council’s spokesperson Prisca Jamali said in an interview yesterday that the scheme will help to boost output to 50 000 metric tonnes (MT) in the forthcoming season from about 10 000MT in the previous season as it will ensure easy access to certified seed.
This year, 300MT of certified seed has been produced in the country and will be distributed to farmers on credit and the money will be recovered during the selling season,” she said.
Masapa Cotton Ginners director Oswald Lutepo, whose firm multiplied the seed, said in an interview yesterday that they will distribute the seed through the council beginning tomorrow.
He said: “We are working on a hub and spoke system where the seed will be dropped at a cotton hub before it is distributed in various extension planning areas.
“The first batch this week will be 10MT, but we are hopeful that the subsequent batches will be 20MT because as of now, we are still finalising the anti-counterfeit process to make the seed secure.”
Lutepo said the seed will be sold at K10 000 per kg, which is affordable compared to hybrid seeds pegged at about K62 000 per kg.
Cotton Farmers Association executive secretary Snowden Mbalafana said yesterday that the new system will work to the advantage of farmers.
He said the farmers will be guaranteed access to inputs that do not require collateral.
“The input suppliers have committed K6 billion of which the collateral is the system itself,” he said.
Agricultural policy development expert Tamani Nkhono Mvula said efforts to improve cotton productivity are welcome, considering the vast potential the sector has in line with the country’s export drive.
He said: “One of the factors behind cotton sector downscaling has been the reduction of hectares that used to grow cotton.
“Any significant option to increase the production land is welcome because cotton has potential to supplement tobacco as the main foreign exchange earner.”
The council’s executive director Cosmas Luwanda is on record having said the new system will provide a platform for farmers to access inputs, aggregation marketing and automating of input loans through electronic payments.
During last season, Malawi produced 10 000MT of cotton, which was priced at K900 per kg before the price jumped to K1 100 per kg towards the end of the season.
In 2010, cotton hit a record output of 400 000MT due to a loan input scheme, but over the years output has been on the decline.
