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(NYASATIMES) Malawi bans exportation of raw cotton, prescribe prices –VEEP

Malawi bans exportation of raw cotton, prescribe prices –VEEP
By Nyasa Times
Published: June 26, 2009

Malawi government has banned the exportation of raw cotton , Vice President Right Hon Joyce Banda has disclosed. The Vice President made the disclosure on Thursday when she launched a cotton investment project, Integrated Cotton and Textile Manufacturers, a Chinese company, in Balaka.

“It is the wish of the government that all cotton grown in Malawi should be processed in the country,” said Right Hon Banda. She said it is the wish of President Bingu wa Mutharika and his government to ensure cotton farmers in the country earns more money on their commodity.

Banda said the only way to improve proceeds farmers earn on cotton products, government has set minimum buying prices.

The Vice President said all cotton buyers who did not agree to K75 per kilogramme minimum price can go elsewhere saying it is the President’s directive for the prescribed procurement prices.

Banda urged companies to utilize locally grown cotton to feed into the textile manufacturing rather than exporting it.

Like tobacco farmers, many cotton farmers have been complaining that they were being exploited by pricing problem suspecting that buyers appear to have formed a cartel to fix prices.

Last year, the country’s largest textile manufacturing company, Mapeto David Whitehead and Sons Malawi Limited, sent its staff on leave due to the scarcity of cotton. The company uses about 1,200 metric tons of cotton a year.

Minister of Trade and Industry, Eunice Kazembe speaking at the same function said cotton has been given prominence by the current administration and would become Malawi’s second cash crop after tobacco.

She said the opening of the cotton factory in Balaka will live to government’s goal to turn Malawi into a producing and exporting nation.

Chinese ambassador Lin Songtian said the company will employ about 1,000 Malawi and that the company will also be producing cooking oil and manufacturing clothes.

He said final product will be exported to China.

In his State of National Address under the theme ‘Malawi’s Economic Miracle’ delivered during the opening of the 41st session of Parliament and the 2009/2010 Budget meeting in Lilongwe, President Mutharika said the country’s total export revenue last year increased by about 30 percent from K80.4 billion to K104 billion in 2007.

According to the President, cotton was the third after tobacco , tea which contributed greatly to export earnings .

Malawi grows about 75,000 metric tons of cotton per year.

Labels: COTTON, JOYCE BANDA, MALAWI

posted by MrK @ 7:44 PM