Home / Knowledge / News / Textiles / Cotton industry builds hope on contract farming
Cotton industry builds hope on contract farming
12
Jan '11
The cotton industry stakeholders in Tanzania, in their efforts to save the cotton industry of the country from collapsing have decided to opt for contract farming at the very start of the current cultivation season.

Marco Mtunga, the acting Director General of the Tanzania Cotton Board (TCB) revealed that this decision was taken by the industry stakeholders as back as in May 2010, whereby they resolved to opt for contract farming for entire Western Cotton Growing Area (WCGA) of the country for the 2011-12 season.

He further stated that, as per the decision, under the new model no licence to trade cotton would be provided to the cotton dealers who did not have ginners.

Several issues in cotton production like inferior quality of cotton, less productivity and a low level of mechanization have remained important concerns in Tanzania since long and the same has even discouraged the cotton cultivators and induced them to switch to cultivation of other cash crops like tobacco, he said.

Contract farming is seen to reverse this trend, as it provides the farmers with an assurance for inputs, marketing support and also a steady price and income. This becomes possible because under the contract farming model the ginners are required to make direct payments on delivery.

Further, deviating from the earlier trend, where the cultivators and the ginners used to enter in an agreement only at the time of cultivation, which resulted in inferior and low produce of cotton, the contract farming model is likely to keep the agents away from the cotton trade.

The official said that, the contract farming model would facilitate direct contact of the cotton cultivators with ginners who would work in association with each other right from the stage of ploughing to pricing. The cotton industry stakeholders last year decided that no one other than the ginnery owners should be provided the licence to participate in contract farming, he added.

Due diligence would be carried out for the existing ginners to determine their financial strengths as partial fulfilment to the requirement of providing them licence to engage in cotton trade, the official said.

He informed that, by now around 72 percent of the targeted 50,000 cotton cultivators of WCGA have engaged themselves in contract farming for the 2010-11 season, after a two year pilot study which was undertaken on contract farming in Mara Region.

TCB, intending to safeguard the interests of the cultivators as well as the ginners, would monitor the contract farming in the region.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 19th Sep 2017

Karl Mayer expands service operations in Asia

Karl Mayer, a world leader in the production of warp knitting and...

Textiles | On 19th Sep 2017

Welspun bags Made in Green label by Oeko-Tex

Welspun, a leading home textiles manufacturer, has been awarded Made...

Courtesy: SGS

Textiles | On 19th Sep 2017

SGS expands testing facilities in Naucalpan, Mexico

SGS has expanded testing facilities in Naucalpan, Mexico, creating a...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search