By Enock Balakasi
The African Institute of Corporate Citizenship (AICC) has warned that Cotton sector is at the verge of crashing if nothing is done. The organization has since called on government to inject $300 million (about K2.2 billion) in the cotton industry if the sector is to be revamped.
AICC Chief Executive Office Felix Lombe said if this money can be injected in the next three years, the sector could generate over $1 billion (about K730 billion) in the next five years.
Lombe said this on Monday during press briefing in Lilongwe. The development follows the continued dwindling levels of cotton production in the recent years.
Although Malawi’s fourth major foreign exchange earner, cotton production has continued to decline over the years now averaging yields less than 600 kilograms per hectare.
Uncertainty of availability of inputs and reliable markets are among the factors that have led many cotton farmers to seek alternative high value crops.
He said cotton production has been fluctuating from 20 000 metric tons (MT) to 100 000 MT between 2003/04 and 2015/16 growing seasons due to fluctuation in number of growers, cultivated area and yields.
Last year, output for the crop dropped by a third to 15 000 metric tons relative to the prior year due to dry spells among other key factors.
“Looking at the trends in the cotton industry, it is clear that we are really stuck, but cotton remains a strategic crop in Malawi.
“What we are also looking for is an injection of $300 million from government for the next three years. It might look like a huge amount but the benefits are enormous. We are calculating that in the next five years cotton can bring on board $1billion,”he said.
Cotton is grown by between 200,000 to 400,000 smallholder farming families and creates direct employment for about 200,000 farmers and over 800,000 dependents with a value of S$ 26.5 million.