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Olam Mozambique eyes setting up ginning plant
Aug '10
Olam Mozambique, a subsidiary of Singapore based Olam International, intends setting up of a new cotton ginning factory in Mossurize district in the Central Mozambican province of Manica.

Olam Mozambique, which possesses cotton concessions in four provinces, including Zambézia, Manica, Tete in the Central region and Nampula in the North, will spend US $6 million on the project to be launched this year.

The new factory, which is projected to start its operations by end of March 2011, would generate job opportunities for around 200 citizens of the country.

The company, over a period of time intends to establish itself as the largest cotton producer in Mozambique. For the purpose it targets to raise its production from current 12,000 tons to 60,000 tons.

The factory is being set up with to reduce any sort of dependence on third parties for ginning, after cotton output attains its production target of 60,000 tons.

The company is even looking forward to capacity building of the farmers in the concession areas, to hike the production and also to induce others to take up cotton cultivation.

This needs to be done because cotton crop has continuously been confronted with challenges posed by other crops like sesame and beans, as these crops earn comparatively higher returns to the farmers.

Fibre2fashion News Desk - India

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