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Farm gate price for cotton to remain at sh900
Jun '10
As per senior officers, prices of cotton are estimated to be stable for the second season. The farm gate price will remain at sh900 per kilogram, a rise from the sh450 figure, which was paid to farmers during the 2007-08 fiscal.

Kazinga Channel region cotton development office, Adriano Katwetegeke said that, the Cotton Development Organisation (CDO) has made up their mind to retain the prices at sh900 as an incentive to increase production.

Kasese, Kamwenge and Bushenyi are the three sub-zones that fall under Kazinga Channel. As per CDO western region office, the zone's production will be around 25,000 bales and the net earnings of the three districts will be sh12.27 billion.

In February, Jolly Sabune, Managing Director, CDO said that, government had given farm inputs to renew cultivation of cotton, so as to perk up the financial status of the farmers.

Government provided farm inputs included free good quality seeds, which were delivered before time for planting and prices of pumps and pesticides were cut down by 50 percent.

It was the Agriculture Minister, Henry Bagire, who announced early this year, that, maintaining the cotton prices will lure more farmers to cultivate the crop.

He also said that, being a strategic crop, it will improve the household revenue and will also ensure wealth for all. The price of sh900 per kilogram is a fair price and the same is likely to be continued and maintained for the next season as well. This decision was taken on requests received by Bagire from the farmers of Kasese and Bushenyi.

With the commencement of the new season in April, farmers got weary about the fluctuations in price, which gets impacted by the global market forces.

Continued Bagire, cotton provides higher returns as compared to other crops, as on an average, cotton farmers can earn anywhere between sh700,000 – 1.4 million per acre.

As cotton is a foreign exchange revenue earner, an employment generating crop and a great source of household income, Bagire urged the local leaders to promote cotton growing activities, in their specific areas.

Following three continuous years of fall, the International Cotton Advisory Committee, has targeted a rise in world cotton production in 2010-11. But this growth is dependent on rise in cultivation of crop encouraged by increased global cotton prices.

Fibre2Fashion News Desk - India

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