Not carded or combed cotton market in Mozambique

Earlier Report Observations

In 2018, production of not carded or combed cotton in Mozambique stood at 115.5 thousand tons, with a market size of 115.4 thousand tons. By 2019, production increased to 121.8 thousand tons and the market grew to 123.3 thousand tons. This growth was supported by government policies, including regulation under Decreto n° 37/2015 and the activities of the Instituto do Algodão e Oleaginosas de Moçambique (IAOM), which stimulated production. In 2019, the minimum price for cotton was set at 33 meticais per kilogram, providing stability for growers, and investments in new technologies, such as those implemented by Grupo JFS in Niassa, contributed to higher output.

In 2020, production fell to 109.1 thousand tons and the market size dropped to 104.2 thousand tons. Despite a subsidy of 240 million meticais for the cotton price in the 2020/21 season, overall volumes declined, although the province of Niassa recorded a historic production peak. In 2021, the approved price was 25 meticais per kilogram, lower than the previous level, and production continued to decrease to 99.1 thousand tons, with the market shrinking to 96.2 thousand tons. In 2022, production saw a modest recovery to 101.8 thousand tons and the market reached 103.6 thousand tons, aided by the maintained minimum price of 33 meticais and initiatives to attract private investors, even as the closure of the sole fostering company in Cabo Delgado had a negative impact.

A sharp contraction occurred in 2023, with production plummeting to 70.7 thousand tons and the market size falling to 62.9 thousand tons. This followed the government's announcement that it would no longer subsidize cotton prices and set the price for first-class seed cotton at 22 meticais per kilogram, a 12% cut from the previous season. In 2024, industry data indicated cotton production rose by 2% to 24,000 tons, but remained well below target levels, while export earnings dropped by 71%, reflecting ongoing sectoral challenges.

Production not carded or combed cotton in Mozambique

In kind, 2017-2020, K t

Top producers of not carded or combed cotton, 2017-2020

World map of production of not carded or combed cotton, 2017-2020

The market showed an unstable trend throughout the period. Production reached its peak in 2019 at 121.8 thousand tons, then fell to its lowest point in 2017, with a two-fold difference between these years. In 2020, Mozambique produced 109.1 thousand tons of not carded or combed cotton, which represents a 10.5% decrease compared to 2019. The largest production increase occurred in 2018, at 85.8%.

Annual dynamics of production in Mozambique in kind, 2017-2020, K t

Exports not carded or combed cotton from Mozambique

Exports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Exports reached their highest level in 2017 and their lowest in 2019, with a 112-fold gap between these years. In 2020, Mozambique exported 5 805 tons of not carded or combed cotton, showing a significant increase of 6,481.3% compared to the previous year. The minimum export value was recorded in 2019 at 88 tons. The largest decline occurred in 2018, at 91.0%.

Annual dynamics of product's exports from Mozambique in kind, 2017-2020, t

Structure of product's exports in kind by countries, 2017-2020

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Exports in value terms peaked in 2019 and reached their lowest point in 2018, with an 11.1-fold difference between these years. In 2020, Mozambique's exports of not carded or combed cotton amounted to 9 315 thousand US dollars, marking a sharp drop of 70.0% compared to 2019. The minimum value was recorded in 2018 at 2 800 thousand US dollars, while the maximum was in 2019 at 31 027 thousand US dollars. The largest increase occurred in 2019, at 1,008.2%.

Annual dynamics of product's exports from Mozambique in value, 2017-2020, K $ US

During the period from 2017 to 2020, exports in value terms of not carded or combed cotton from Mozambique were relatively evenly distributed. Malaysia accounted for 17.7% of exports, Singapore for 16.6%, and China for 12.8%. Together, these three countries represented 47.1% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Mozambique in value, 2017-2020

Imports not carded or combed cotton to Mozambique

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. Import levels fluctuated, with the highest point in 2017 and the lowest in 2018, showing a 2.1-fold difference. In 2020, Mozambique imported 938 tons of not carded or combed cotton, equivalent to a decline of 37.7% compared to the previous year. The minimum import value was recorded in 2018 at 823 tons. The largest decline occurred in 2018 at 53.2%, while the largest increase was in 2019 at 83.1%.

Annual dynamics of product's imports to Mozambique in kind, 2017-2020, t

From 2017 to 2020, three main markets—Tanzania, France, and India—together accounted for 67.9% of total imports in kind of not carded or combed cotton to Mozambique.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Mozambique in kind, 2017-2020

Imports in value, K $ US

The market showed signs of volatility over the observed period. Imports in value terms peaked in 2019 and reached their lowest point in 2020, with a 2.1-fold difference between these years. In 2020, Mozambique's imports of not carded or combed cotton amounted to 1 657 thousand US dollars, equivalent to a sharp decline of 53.3% compared to 2019. The maximum value was recorded in 2019 at 3 551 thousand US dollars. The largest increase occurred in 2019, at 106.5%.

Annual dynamics of product's imports to Mozambique in value, 2017-2020, K $ US

Throughout the period from 2017 to 2020, Tanzania, France, and India remained the key directions for imports in value terms. Tanzania accounted for 29.7% of imports, France for 21.4%, and India for 17.2%. Together, these three countries represented 68.3% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Mozambique in value, 2017-2020