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The government has been urged to invest in value addition for locally produced cotton to unlock the sector’s economic potential and improve farmers’ earnings.
Members of Nyakatonzi Growers Co-operative Union Ltd (NGCU) in Kasese district made the appeal on November 3, 2026.
The union’s general manager, Adam Bwambale, made the remarks shortly after an interface with the House Committee on Trade, chaired by Boniface Okot (Kole South, NRM).
The meeting discussed a motion recently moved by Dr Eunice Otuko Apio (Oyam North, UPC), urging government to revitalise Lira Spinning Mill.
“For us, we want these spinning mills so that we are not subjected to New York futures market prices. You can imagine, while growing up, we used to wear uniforms from Jinja (Nyanza Textile Industries Limited—Nytil). If they can provide uniforms for all schools, bedsheets and what have you, there is enough market. We can stop importing second-hand clothes (mivumba),” Bwambale said.
He said exporting spun yarn would be a better option than exporting raw cotton, arguing that the prices fetched on the international market were too low for farmers to benefit.
Spun yarn is a continuous strand of textile made by twisting short, discrete lengths of fibre, known as staple fibres, together to create a cohesive thread.
“Currently for a kilogram of cotton, a farmer is being sh2100 or sh2000. Last year, it was sh1,500 but previous years a kilogram even went to Sh3,000,” Bwambale said.
“In the 1970s, world cotton prices were generally higher. However, over time, cotton fibre has faced stiff competition from synthetic materials. In those days, wearing a nylon garment could cause burns. Today, synthetic fabrics have been improved to the extent that it is difficult to distinguish them from natural fibres. These man-made fibres have depressed cotton prices. We used to have fabrics containing 60 percent cotton and 40 percent polyester, but today you find garments made entirely of polyester and very good. It is no longer a health problem,” he explained.
Nytil speaks out
The argument was supported by Nytil in a presentation seen by New Vision.
“Uganda annually earned just less than $20 million on the exportation of 90% cotton lint in 2024 and 2025, respectively. NYTIL posted $37.7 million in 2024 and $46.1 million in 2025 on processing hardly 10% of cotton lint alongside other blends, underpinning the centrality of value addition,” the company pointed out.
“Imports of textiles have exceeded $350 million as at 2025, yet this can be reversed once the textile sector is optimally developed through initiatives like the one envisaged by NYTIL for spinning Project to effectively resonate with the notion of tenfold growth in GDP through deliberate actions,” it added.
Production capacity
According to official statistics, about 250,000 smallholder farmers across Uganda grow cotton.
Production figures indicate that domestic consumption of cotton lint has declined slightly over the past five years compared with the volume exported.
In the 2020/21 financial year, Uganda produced 50,709 bales of cotton lint, of which 44,709 were exported, while about 12 per cent was consumed locally.
In the 2024/25 financial year, national production increased to 54,883 bales. Of these, 49,860 were exported, while domestic consumption accounted for approximately 8 per cent.