COTTON REVENUE UP 37%

MBABANE – Eswatini Cotton Board is said to have celebrated one of the favourable seasons recently.

This is per the Board’s latest annual report covering the period 2020. Total revenue for the year under review is said to have increased to E20 478 831 compared to E12 810 743, as a result of increased sales of ginning products. Calculations by this publication show that this is an increase of at least 37 per cent. The value of the crop is also said to have increased to over E9 million from around E4.7 million the previous year. “Farmer’s income also increased to E 8 686 531.05 compared to E4 043 463.61 in 2019. “Transport for bringing the cotton to the ginnery was borne by the Board and stood at E356 013.55 with E242 064.00 paid to transport contractors and E113 949.55 paid to farmers who used their own transport to deliver the cotton to the ginnery. This kind of scenario impacted positively to livelihoods of both the farmers and their families and also transporters and the local businesses that depend on the crop for their survival,” highlighted the report.

Increased

Seed cotton production also increased to 1 494 metric tonnes compared to 815 metric tonnes of the previous season. The Lubombo Region continued to contribute the highest production contributing 74.8 per cent of the national production.  Shiselweni and Manzini were at 20.8 and 2.3 per cent, respectively.  Hhohho had the lowest contribution of two per cent. However, when considering the production per hectare, Shiselweni produced the highest yield of 1073 followed by Lubombo with 1 030. “The national average for the season stood at 977 increasing from 648 kg per hectare of the previous season. This was as a result of the good rains received throughout the country. The Lubombo Region continued to dominate the area under cotton production at 1 085 hectares followed by the Shiselweni at 289 and Hhohho and Manzini at 34 and 38 hectares, respectively,” highlighted the report.

Total expenses for the year, on the other hand, stood at E6 758 182, which was up from E6 408 042 in the previous year. The Board realised a net profit of over E1.44 million compared to a net profit of only E200 483 in 2019. The Cotton Board’s administrative arm was supported by government through a subvention of E1.5 million. Even though climate change is proving to be a challenge, farmers are said to be still striving under rainfed condition, subjecting the crop to erratic rain fall patterns. A source of funds for agriculture inputs remains a challenge in the cotton industry.

Shying

Most financial institutions are reportedly shying away from funding agriculture under rain-fed conditions. The cotton revolving fund remains as the only source of funding to support growers. Cotton is one of the many agricultural crops with a readily available market in Eswatini. The market is located in the heart of the cotton growing region, in Big Bend. In the report, Chief Executive Officer (CEO) Daniel Khumalo said the Board continued to promote genetically modified cotton under irrigation. A total of 240 hectares were planted. The seed was sourced from India, the only supplier willing to supply.

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