THE Cotton Development Organisation (CDO) has announced a 33% rise in cotton prices from sh600 per kilogramme last season to sh800 for the 2008/09 season.
By Ibrahim Kasita
THE Cotton Development Organisation (CDO) has announced a 33% rise in cotton prices.
Jolly Sabune, the managing director, said in an interview that the farm-gate prices for the 2008/09 season had increased to sh800 from sh600 per kilogramme last season.
She said indicators on the international market show that prices were going to be good this season.
Sabune said the sh200 increment was good and would encourage the farmers.
â€œCotton prices in the global market have surged to $82 cents per pound (one pound equals to almost half a kilogramme) from $74 cents per pound last year.â€
She said the price increment had also been triggered by the oil prices and prices of competing crops like soy beans, corn, wheat and sunflower, which have been going up.
â€œAn indicative price is a bargain and when CDO announces the indicative price, it does not remain constant. Depending on the supply and demand, the price can go up, but it can not come below the indicative price,â€ Sabune explained.The rise in the price puts conventional and organic cotton at the same price level in Uganda.
She said the Government had intervened to support the farmers by supplying high-quality seeds and distributing pesticides at affordable prices to all strategic centres.
Sabune said the ginners had not supplied the inputs this season.
Cotton prices increase in new season