Rethinking Mozambique’s cotton price fixing system to align producers’ prices with international prices
Although the government supports cotton farmers by regulating prices, cotton producers in Mozambique receive prices that are lower than international reference prices. MAFAP analysis suggests that the following measures would improve prices for producers:
• fostering competition along the entire cotton value chain, especially among processing companies (ginners);
• making processing more efficient to increase both the quantity and quality of outputs;
• revising the domestic price fixing system to align producers’ prices with prices in international markets; and
• strengthening the market power of producers, relative to ginners, to improve transparency and equity in cotton market transactions.
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