The Cotton Council of Malawi (CCM) says it plans to resume piloting the Cotton Management Information System (CotMIS) in the next marketing season as part of efforts to digitize cotton transactions in line with Malawi 2063.
The development comes as this year's cotton marketing season has reverted to a manual payment system, with farmers receiving cash unlike last season when the sector piloted digital payments through CotMIS.
According to CCM spokesperson Prisca Jamali, the council is currently working on improving the system to make it more convenient and reliable while addressing glitches that previously resulted in delayed payments to some farmers.
Jamali said only about five percent of cotton farmers were affected by the delays during the previous season.
"We are working to improve the system so that it is more convenient and reliable. Our goal is to ensure that all farmers are paid on time through digital channels in line with Malawi 2063," Jamali said.
She further said the council will intensify efforts to increase farmers' understanding of digital transactions to encourage adoption of mobile payment systems.
"We are actively engaging farmers to build digital awareness and drive real adoption of mobile transactions," Jamali said.
Meanwhile, Malawi Cotton Company's Field Manager, Yohane Jim, said the current manual payment system is operating smoothly, citing the high turnout of cotton farmers who have positively embraced the arrangement.
However, Jim echoed Jamali's sentiments on the need to increase farmer engagement and understanding of digital payments to help the sector adapt to changes in how business is conducted.
"The cash payments are working well this season and farmers are turning up in large numbers. But we also need to sensitise them more on digital payments so they can easily transition when CotMIS returns," Jim said.
During the previous marketing season, some cotton farmers complained that the electronic payment system resulted in delayed payments. However, the Cotton Council of Malawi said those affected accounted for about five percent of the total farmer population and pledged to rectify the glitches before reintroducing the system.
Cotton is ranked as the fourth-largest strategic cash crop and foreign exchange earner in Malawi. This year, the country expects to earn at least K27 billion from the sale of 22,000 metric tonnes of cotton.