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Contract farming issue troubles Tanzanian cotton industry

02
May '12
Some sort of confusion prevailing among the cotton industry stakeholders over issues related to contract farming has raised concerns over the future of cotton farming activity in Tanzania.

About 16 million people in Tanzania depend on cotton farming for their livelihood,

Cotton farmers, ginners and other industry stakeholders are carrying further an internal conflict, drawing a line between those who are in favour of contract farming and those against it. This is leading the sub-sector to confusion just a few weeks ahead of start of the buying season.

Besides, some local cotton traders and ginners have been placed on the default list of the International Cotton Association (ICA) for alleged violation of sales contract with overseas buyers. This is feared to bring further disrepute to the country's cotton industry.

The list warns international buyers from doing business with those cotton traders and ginners who have defaulted in honouring their contracts in the past, to the detriment of the other parties.

Tanzanian cotton industry stakeholders have forewarned that if the issues are not resolved, it is likely to lead to further deterioration of the sector, which accounts for around one-fourth of the country's economy, and provides livelihood to millions of people.

Addressing a meeting, the Tanzania Cotton Association (TCA) Chairman, Mwita Gachuma, said if the country wants to increase creditworthiness of Tanzanian cotton industry in international market, it would have to make sure that no domestic ginner is blacklisted.

Mr. Gachuma said Tanzanian cotton was once used to be ranked above the US cotton, but in recent times its position has deteriorated.

Fibre2fashion News Desk - India


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