Cotton farmers in the three Northern Regions have threatened to abandon cotton production this year if cotton companies do not increase the price of seed cotton.
The farmers issued the threat at a meeting with representatives of the cotton companies operating in the Northern, Upper East and Upper West Regions at Tamale on Thursday to discuss the producer price for this season.
After several hours of bargaining the two parties failed to arrive at a "realistic" price. While the farmers wanted 6,000 cedis per kilo of seed cotton, the companies were offering 1,500 cedis per kilo.
The farmers contended that the companies increased the prices of inputs and other production services by between 40 and 100 per cent this year.
For instance, a bag of Compound Fertiliser, which was sold at 60,000 cedis last year, has shot up to 100,000 cedis while Sulphate of Ammonia, which was selling at 40,000 is now sold at 80,000 cedis.
The cost of tractor services has also gone up from 75,000 cedis to 90,000 cedis. Kuoru Kuri, Buktie Limann, Paramount Chief of the Gwallu Traditional Area and spokesman for the farmers, said cost of production last year was about 950,000 cedis per unit.
At such a cost, he said farmers incurred a loss of about 165,000 cedis per unit and most farmers had to pool resources from other ventures to make up the loss.
He said cotton farming has the potential of being the gold mine of the North if the companies offer the farmers good packages and prices.
However, low prices and low incentives offered by the purchasing companies over the years have undermined farmers efforts, some of whom now resort to diverting fertilisers meant for cotton into the production of other crops that have higher market prices.
He blamed the companies for this saying Ghana's cotton is rated poor on the world market because the companies mix grades one and two.
Dr Shashikant Bhatkulikar, spokesman for the cotton companies, said cotton production is cost-intensive.
He said the companies are operating at very difficult times because Ghana's produce is not of the best quality as compared to Burkina Faso and Togo.
Dr Bhatkulikar said the companies expect farmers to produce 700 kilos per unit but most farmers produce as low as 500 kilo per unit.
Mr Ben Bukari Salifu, Northern Regional Minister urged the companies to continue to educate the farmers on the zoning system to avoid duplication.
Under this system the farming communities are grouped into zones to which each company is assigned responsibility for the supply of inputs and purchase of produce.
Mr Salifu urged the farmers to use the inputs for the purpose for which they were given to maximise production.
He advised the companies to provide social facilities in the communities in which they operate to win their goodwill and co-operation.
