Tanzania cotton farmers urged to sell early as global market uncertainty weighs on prices

By Prosper Makene

Tanzania's cotton farmers have been urged to sell their produce at the current official price rather than speculate on future increases, with industry leaders warning that volatile global markets offer little guarantee of higher returns later in the season.

The Tanzania Cotton Association (TCA) says many growers are still holding on to harvested cotton in anticipation of a price rise, despite the government setting the indicative buying price at TSh 1,240 per kilogram for the 2026 marketing season.

Speaking to local media, TCA Secretary Boaz Ogora cautioned farmers against storing cotton for prolonged periods, saying the practice exposes them to unnecessary financial and physical risks.

"We encourage farmers to sell their cotton now and benefit from the current price instead of waiting for an uncertain increase," Ogora said. "Keeping cotton at home is risky because it can be damaged by moisture, pests or even fire. Families also face safety concerns, especially where children are involved."

His remarks come as harvesting reaches its peak across Tanzania's major cotton-producing regions, including Simiyu, Shinyanga, Mwanza, Geita and Tabora, where thousands of smallholder farmers depend on the crop as their primary source of cash income.

According to Ogora, any adjustment to farmgate prices will depend largely on developments in the international cotton market, where prices remain subdued.

"The world market has not yet improved enough to justify raising prices. Since our cotton is mainly sold abroad, local prices will continue to depend on global demand," he said.

Cotton is among Tanzania's leading export crops, with more than 80 percent of lint destined for international markets. 

As a result, domestic prices are closely linked to movements on global commodity exchanges, particularly the New York cotton futures market, as well as demand from major importing countries and competition from leading producers such as India, Brazil and the United States.

Industry analysts note that fluctuating international prices, exchange rate movements and slowing global demand continue to limit the prospects for significant price improvements despite stable domestic production.

The crop remains a critical pillar of Tanzania's rural economy, supporting more than 500,000 smallholder farming households while contributing significantly to agricultural export earnings. 

Beyond farming, the sector provides employment through ginning, transport, oil processing and textile manufacturing.

However, the industry has struggled with recurring challenges over the years, including unstable international prices, climate-related production shocks and quality concerns arising from contamination.

In response, the government and the Tanzania Cotton Board have introduced certified seed programmes, promoted contract farming and strengthened grading and quality control systems to improve competitiveness in export markets.

Cotton farmer Masunga Shiwa from Kasoli village supported the association's advice, saying expectations of higher prices may not materialise.

"Some farmers believe prices will increase later, but there is no certainty," he said. "They should also avoid mixing cotton with sand or adding water because that lowers quality and ultimately reduces its value."

Quality remains one of the sector's biggest concerns. Contaminated cotton attracts lower prices from buyers, reduces ginning efficiency and undermines Tanzania's reputation in premium international markets.

The Tanzania Cotton Board has therefore intensified farmer education on proper harvesting, drying and storage techniques to preserve fibre quality and improve returns.

For many rural households, proceeds from cotton sales finance school fees, healthcare, household consumption and the purchase of farm inputs for the next planting season. 

Delaying sales in the hope of better prices may expose families to unnecessary cash-flow constraints while increasing the risk of post-harvest losses.

Although the TCA says it will continue monitoring international market trends and engage the government should conditions improve, the association maintains that selling early remains the safest option under current circumstances.

As Tanzania seeks to expand domestic textile manufacturing and increase value addition within the cotton industry, maintaining a steady supply of high-quality seed cotton will be essential. 

Industry stakeholders say achieving that objective begins with timely marketing, proper handling and preserving the quality of cotton at the farm level.

Post a Comment

Previous Post Next Post

Advertisement