Establishment of Statutory Measure and determination of guideline prices: levy relating to cotton lint (R. No. 314 of 2004)

STAATSKOERANT, 12 MAART 2004 No. 26113 7 No. R. 314 12 March 2004 MARKETING OF AGRICULTURAL PRODUCTS ACT, 1996 (ACT No. 47 OF 1996) ESTABLISHMENT OF STATUTORY MEASURE AND DETERMINATION OF GUIDELINE PRICES: LEVY RELATING TO COTTON LINT I , Angela Thokozile Didiza, Minister of Agriculture, acting under sections 13 and 15 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996)) hereby (a) establish the statutory measure set out in the Schedule hereto; (b) determine that the guideline price for cotton lint shall be 1179c per kilogram. Minister of Agriculture. 8 No. 26113 GOVERNMENT GAZETTE, 12 MARCH 2004 SCHEDULE Definitions 1. In this Schedule any word or expression to which a meaning has been assigned in the Act shall have that meaning, and unless the context otherwise indicates ”cotton” means cotton lint and seed cotton derived from the ball of the cotton plant (Gossypium hirsutum); “cotton lint” means the fibre derived from the seed cotton after the seed cotton has been ginned; “Cotton South Africa” means the Company registered in terms of section 21 of the Companies Act, 1973 (Act No. 61 of 1973), which operates under the name Cotton South Africa; “ginner” means any person who gins seed cotton; “gin” in relation to seed cotton, means to separate the seed and fibre in seed cotton and ginning has a corresponding meaning; “seed cotton” means the lint and seed derived from the bail of the cotton plant (Gossypium hirsutum), before it has been ginned; “the Act” means the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996). STAATSKOERANT, 12 MAART 2004 No. 26113 9 Purpose and aims of statutory measure and the relation thereof to obiectives of the Act 2. 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: (a) Rendering of information services to all role-players; (b) the promotion of cotton production and the usage; (c) the co-ordination of research; and (d) the maintenance of quality standards and norms and the provision of training. The maintenance of macro industry information is regarded as critical for strategic planning by the cotton industry as well as the directly affected groups individually. 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 10 No. 26113 GOVERNMENT GAZETTE, 12 MARCH 2004 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 co-operatives and processors of cotton 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 small-scale farmers and the developing cotton industry. The established 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. 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. Product to which statutw measure applies 3. This statutory measure shall apply to cotton lint. Area in which statutory measure applies 4. This statutory measure shall apply within the geographical area of the Republic of South Africa. 5. A levy is hereby imposed on all cotton lint, ginned by ginners from seed cotton. STAATSKOERANT, 12 MAART 2004 No. 26113 1 1 Amount of levv 6. The levy shail amount to 17c per kiiogram cotton lint prodticed, excluding VAT ( 1 9 . 3 8 ~ per kilogram lint produced, VAT included). Persons bv whom and to whom levv is pavable 7. The levy imposed in terms of clause 5 shall (a) be payable by ginners; and (b) be payable to Cotton South Africa. Pavment of levv 8. (1) Payment shail be made not later than the twentieth day that follows the month during which the cotton lint on which the levy is payable, was produced. ' (2) Payment shall be made by means of a cheque, postal order or money order made out in favour of Cotton South Africa. (3) a) The payment shall be submitted monthly, when forwarded by post to Cotton South Africa P.O. Box 912232 SILVERTON 01 27; b) when delivered by hand delivered to Cotton South Africa Cotton South Africa Building 12 No. 26113 GOVERNMENT GAZETTE, 12 MARCH 2004 90 Cycad Place off Watermeyer Street Val de Grace Extension 10 PRETORIA 01 84. Commencement and period of validitv 9. This statutory measure shall come into operation on 1 April 2004 and shall lapse on 31 March 2008.