Making the white gold, gold again: reducing market asymmetries and increasing competition in Mozambique’s cotton market
Current policies have not been able to ensure stable price incentives to cotton farmers in Mozambique, during the last decade. Producers are currently penalized by the international price volatility and the strong depreciation of the national currency against the US dollar. To reduce market distortions and increase profitability and competitiveness of the Mozambican cotton sector, the analysis suggests, among others intervetnions, to shield farmers against volatility in international markets exchange rate risks by introducing hedging mechanisms and improving the current price policy, as well as to strenghten farmers’ bargaining power and agricultural extension services.
This analysis has been produced by the Centro de Estudos de Políticas e Programas Agro-alimentares (CEPPAG) of Mozambique with the financial and technical support of FAO/MAFAP. The brief is available here.
