Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996)Notices2026 NoticesEstablishment of Statutory Measure and Determination of Guideline Prices : Levy Relating to Cotton Lint2. Purpose and aims of statutory measure and the relation thereof to objectives of the Act |
The purpose and aims of this statutory measure are to provide financial support for the following functions that the cotton industry has identified as essential and in the interest of the industry as a whole:
| • | Acting as an industry forum for all cotton role players in the value chain. |
| • | Developing of industry intelligence to inform sector decision-making and the rendering of information services to all role players. |
| • | Enhancing of the marketability of cotton through official standards and standardised procedures, research and training. |
| • | Creating awareness on cotton and its many uses. |
| • | Coordination and co-financing of production research and development. |
| • | Facilitation of transformation and growth of the cotton sector in an inclusive manner; and |
| • | Assisting in driving the cotton sector towards sustainable practices that support economic, environmental and social operations. |
The maintenance of aggregate industry information is regarded as critical for strategic planning by the cotton industry. Proper and accurate market information that is available on a continuous and timeous manner, will not only increase market access for all market participants, but will also promote the efficiency of the marketing of cotton.
The promotion of the production of cotton can make a significant contribution towards the level of household food security in South Africa, particularly in the more arid regions of the country where other summer crops have regularly failed. It is furthermore important that perceptions be changed in terms of crops more suited to those areas to feature more strongly.
Research is essential for the furtherance of the primary cotton industry’s competitive position, taking into account the extremely competitive marketing environment in which cotton compete and the steady decline in the cotton fibre market over the past few years. Research is also important for cotton cultivation by commercial and small-scale farmers. Studies in connection with cultivar characteristics such as yield tendencies, adaptability and yield stability, make it possible for the cotton producer to make meaningful cultivar choices for specific conditions.
Quality standards, grading and classification as well as independent arbitration services for quality disputes have to be maintained in order to promote the efficiency of cotton marketing per se. This function is deemed a basic precondition for the orderly marketing of cotton. Therefore, grading staff of ginners, spinners, i.e. processors of cotton, as well as traders, also have to be trained on a continuous basis.
A portion of the funds collected by means of this levy will also be focused on smallholder farmers and to promote inclusivity in the cotton industry.
The establishment of this statutory measure will not only assist in enhancing market access for all market participants but will also enhance the viability of the cotton industry and optimise export earnings from cotton exports. The establishment of this measure will in fact further all the objectives of the Act as stipulated in Section 2 thereof.
This statutory measure shall be administered by Cotton South Africa.