Mozambique: Cotton price set at 22 meticais per kilo – Watch

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Mozambique: Cotton price set at 22 meticais per kilo – Watch

1:48 CAT | 02 Jun 2025

Photo: Ministério da Agricultura, Ambiente e Pescas

The Ministry of Agriculture, Environment and Fisheries announced on Friday (30) in Maputo the new price for a kilo of first-class raw cotton of 22 meticais (about US$0.34) for the 2025/2026 campaign, down 12% on the previous campaign.

For second-class raw cotton, the government set the price at 15.5 meticais, against 17.5 the previous year, a drop of 11.42%.

In the meantime, the government is pledged to subsidize the interest rate for the acquisition of equipment and agricultural inputs by cotton producers.

“In parallel with this, we also agreed with the cotton industry to strengthen this strategic value chain. It has a line of around 100,000 producers who are organized in associations, which are part of a development program that is already rooted in discipline and seriousness in how they approach economic transactions within this chain and bring more investments for diversification,” he said.

The government is aware that cotton farmers also produce food products and other diverse crops, “So we want to take advantage of this platform to use it and strengthen food production, which is our main agenda”, Albino said.

Still according to ministry head Roberto Albino, it is not possible for the government to subsidize the price of cotton.

READ: Mozambique stops subsidizing cotton prices in current agricultural campaign

Regarding the possibility of subsidizing interest rates for the acquisition of equipment and inputs by cotton producers, this only applies to those who are within the system with the zero percent rate.

Digital platform to be introduced

The minister announced that a digital platform will be introduced in the current campaign.

“All transactions under our support lines will take place on a digital platform, to avoid informal transactions and also to regulate the credit mechanisms for inputs. To benefit from credit under our financing lines, people must be registered on the digital platform,” he said.

All credit transactions and purchases of marketing inputs will be on the platform to ensure total transparency. “All transactions that are captured in the system, where these taxes are paid, there is transparency and control of goods,” he said.

The government is also challenging cotton producers to expand production to other parts of the country.

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