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Cotton Firms Offer Additional Payments to Farmers as Input Distribution Ramps Up

Cotton companies are issuing top-up payments for higher-grade cotton delivered last season, as distribution of farming inputs increases in preparation for the coming season.

Last year’s severe drought caused a sharp drop in cotton production to around 13,000 tonnes, but the expected La Niña weather pattern brings hope for improved rainfall and yields. The Cotton Ginners Association (CGA), representing private merchants, confirmed that farmers are being compensated with additional payments based on cotton grades. Efforts to secure fair prices and address payment delays are underway to sustain farmer participation.

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Challenges persist, as farmers have voiced frustrations over payment delays and uncertain compensation, with some considering leaving cotton production. Farmers also raised concerns over abuse of the Presidential Inputs Scheme, highlighting a need for accountability. Negotiations for the 2025 season’s cotton prices continue, with industry experts advocating for a pricing structure that balances farmer needs with industry viability.

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