Zambia will enact cotton law by 2007/2008 farming season to stop illegal buying of cotton by ginners who do not finance the cotton farmers, Zambia Daily Mail reported Saturday.

The illegal buying of cotton is hampering the industry, Zambian Agriculture Minister Ben Kapita was quoted as saying by the daily.

While launching the "save Zambia's cotton industry" campaign, he said some cotton ginners are allegedly encouraging farmers who have received loans from other companies to default on their contracts by offering higher prices at farm gates.

"They are able to do this because they have not incurred the costs and risks involved in investing in inputs, extension and other critical services. This practice threatens the viability of the companies that have made those investments and their willingness and ability to invest in future," he said.

He said cotton is the most important cash crop in the country because more than 300,000 smallholder farmers depend on the cotton market.

He urged the farmers not to sell their cotton to the companies that do not finance them, otherwise it will impact the industry negatively.

The ministry forecasted last week that about 55,000 tons of cotton will be produced this year, only nearly one third of that produced two years ago.

Source: Xinhua