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Business & Finance | May 27, 2004

Cotton companies and farmers fix prices for seed cotton

GNA

Tamale, May 27, GNA- The National Cotton Farmers Association and the Cotton Companies Association have approved new prices for seed cotton for this year.

Seed cotton grade "A" would be purchased at 3,000 cedis per kilogram while grade "B" cotton would sell at 2,400 cedis per kilogram A joint communiqu=E9 issued and signed by Hajj Seidu Karim, chief negotiator for cotton companies and Mr Patrick Apullah, National Vice-Chairman of the Cotton Farmers Association in Tamale said the two bodies agreed on the new prices.

Ploughing rates and inputs prices at farm gate had also been fixed. The two associations agreed that ploughing by tractor for a unit of land would cost 140,000 cedis, "NPK" fertilizer would sell at 200,000 cedis per bag, "S/A" fertilizer would cost 150,000 cedis per bag while the cost of insecticide per round would be 40,500 cedis.

The communiqu=E9 said the cotton companies and the farmers groups would have the discretion to fix rates for animal traction adding that the Cotton Farmers Association would ensure the recovery of all outstanding loans owed cotton companies, as well as ensuring 100 per cent loan recovery for the current season.

It said the cotton companies would also reciprocate the efforts of the cotton farmers by ensuring prompt payments for seed cotton purchases from the farmers.

The communiqu=E9 expressed the need for farmers "to go the extra mile" to ensure increased productivity and thereby improve their lot through enhanced incomes.

This would enable them to fulfil their financial obligations to the cotton companies, it said.

It called on the government to consider allocating some of the tractors it had imported to the Cotton Farmers Association through the cotton companies on hire purchase.

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