The Nampula Cotton Company (CANAM) is one of the largest cotton enterprises providing seeds and other raw materials to the peasant farmers. Company is also entitled to purchase cotton from eight districts of the Nampula province.
This year around 16,000 tons of cotton produced in areas of Mecuburi district, in the northern Mozambican province of Nampula.
But due to rain in the recent weeks, over 3000 tons of cotton is rotting and CANAM has not bought the cotton due to some internal problem.
Sources revealed that Deputy Agriculture Minister Catarina Pajume has threaten CANAM to take back some of the areas currently granted to CANAM and will be given to other companies in future campaigns.
CANAM will also have to pay farmers, first grade prices for all the cottons, wet or rotten.