The purpose and aims of this statutory measure are to compel the following parties to keep records and furnish returns to Cotton South Africa: Persons who are parties to the purchase of seed cotton from producers; those persons who process seed cotton; persons who import or export cotton; and those persons who are parties to the purchase of cotton lint from producers or ginners. This is deemed necessary to ensure that continuous, timeous and accurate market information relating to cotton is made available for all role-players. Information gathered by Cotton South Africa from the records and returns will be freely distributed to the market place. Market information is deemed essential for all role-players in a deregulated market, in order for them to be able to make informed decisions. By the compulsory furnishing of monthly returns on an individual basis, market information for the whole of the country can be processed and disseminated to the market place.

The established of this statutory measure will not only enhance market access for all market participants but should also promote the efficiency of the marketing of cotton. Furthermore, proper market information will enhance the viability of the cotton industry and the agricultural sector at large. The measure will not be detrimental to the number of employment opportunities within the economy or fair labour practice.

This statutory measure will be administered by Cotton South Africa, a company incorporated under section 21 of the Companies Act, 1973 (Act No.61 of 1973). Cotton South Africa is appointed to implement, administer and enforce the intervention set out in the Schedule.

It is envisaged that Cotton South Africa will make available macro generic market information to the cotton industry and other interested parties on a monthly basis. This information will be obtained from the returns rendered to Cotton South Africa and will be supplied on a national basis. The information will furthermore be made available in a manner suitable to reach the majority of the role-players in the cotton industry.