Ghanaian cotton sector to cash in on high prices (Ghana)

Minister of Food and Agriculture, Kwesi Ahwoi recently said that, Ghana holds the capacity to produce 250,000 metric tons of lint cotton in the medium term, but then this would necessitate involvement of around 500,000 cotton cultivators in all the three northern regions.

He said this, while speaking at a meeting of the cotton cultivators to launch the "White Gold" campaign.

With world cotton prices averaging at US $2,500 per metric ton, the three northern regions could have brought in US $625 million to the country’s economy during the 2010 cotton season, Ahwoi said.

He said that, for the current year their focus would be to engage 100,000 farmers in cotton cultivation, in order to cash in on the remarkably high prices of lint cotton in the world market.

Thus, the Ghanaian government initiated a programme for revival of the cotton sector, and grouped the cotton belt into three zones and delegated three companies to take care of cotton production in each of these zones.

Wienco Ghana Limited together with a French firm, Geo-Cotton was assigned the responsibility of the North-Eastern Zone, while the North-Western Zone was allocated to Olam Ghana Limited and Plexus together with Amajaro Ghana Limited was allocated North-Central Zone.

The government is not going to authorize establishment of any new ginnery unless the existing ginneries utilize to the fullest, their installed ginning capacity of nearly 90,000 metric tons of lint, Ahwoi said.

He further made an announcement that, the World Bank and its other sister organizations have shown their willingness to finance the programmes aimed at formation of strong farmers groups in all the cotton zones.

The World Bank has also shown its willingness to provide finance for setting up the Cotton Secretariat which by engaging experts, would aid in the revival of the cotton industry.