Government has allowed Mapeto (DWSM) Limited to import raw cotton as the country is facing its shortage. This has brought temporary relief to the company said, Minister of Trade and Private Sector Development Martin Kansichi.
Under the agreement, Mapeto will import raw cotton, process it for export and local consumption.
Minister has asked cotton buyers to increase the buying price of cotton to boost farmers' capacity.
The buying price of cotton at present is between K22 and K25 per kg.
Kansichi informed that his Ministry has asked cotton farmers and buyers to find ways of increasing the price of the crop.
After December World Trade Organisation (WTO) Ministerial talks on cotton subsidies, local cotton farmers should get proper remuneration for his produce according to cost of production, which is currently at K18 per kg, he said.
He said that cotton buyers in Namibia were willing to pay more than K135 per kg for the local cotton.
Farmers could produce more cotton if given the right incentives, Kansichi said.
Cotton was a major crop which could contribute at least 25 percent of country's Gross Domestic Product (GDP).
Government would prioritise local value adding like ginning, cloth production and seed cake manufacturing for cooking oil, the Minister said.
