Government sets 22 meticais per kilo of seed cotton for the 2025/2026 campaign, which corresponds to a 12% drop compared to the previous campaign.

The announcement was made yesterday (30) in Maputo by the Ministry of Agriculture, Environment and Fisheries, Roberto Albino.

For second-rate seed cotton, the government set the price at 15.5 meticais, compared to 17.5 the previous year, a drop of 11.42%.

However, the government guarantees to subsidize the interest rate for the purchase of agricultural equipment and inputs by cotton producers.

Quoted by AIM, Roberto Albino, stated that the government will not subsidize the price of cotton because there are no conditions for this.

"In parallel with this, we also agree with the cotton industry to strengthen this strategic value chain. It has a line of around 100 thousand producers who are organized in associations, which are within a development program already rooted in discipline, seriousness in how they approach economic transactions within this chain and bring more investments for diversification", he said.

Regarding the possibility of subsidizing interest rates for the acquisition of equipment and inputs by cotton producers, it only covers those who are within the system with the zero percent rate.

The minister announced that a digital platform will be introduced in this campaign.

“All transactions on our support lines will take place within a digital platform, to avoid informal transactions and also to discipline input credit mechanisms, so people who will be benefiting from credits within the scope of our financing lines must be registered on the digital platform”, he said quoted in the AIM publication.

On the other hand, all credit transactions and purchases of marketing inputs will be within the platform to guarantee total transparency.

“All operations that are captured in the system, where these taxes are paid, there is transparency and control of goods,” he said.

The government also challenged cotton producers to expand the crop to other regions of the country.