Government to clear $1,5billion cotton arrears

GOVERNMENT has pledged to clear $1,5 billion owed to cotton farmers by ginners in the next few weeks as it intensifies support for the sector to ensure increased output.

Over 60 percent of cotton inputs have so far been distributed to depots across the country and farmers are being called upon to start working hard on the land.

Cotton is one of the strategic crops for industrial value chain and exports. However, ginners were struggling to pay farmers for cotton deliveries made in the 2019/2020 season and appealed to the Government for a $1,5 billion bailout to clear the arrears. The farmers had threatened to boycott growing cotton in protest over delayed payment.

Lands, Agriculture, Water and Resettlement Minister, Dr Anxious Masuka, said in an interview that through Government support cotton farmers would soon be paid their dues.

“The correct context and perspective is that farmers are owed $1,5 billion as a result of the Government support. The Government incentivises production by paying above the market rate,” said Dr Masuka.

“And that is simply what we owe farmers and farmers will be paid in the coming weeks or so. Farmers must go back to the land. The Presidential Cotton Inputs Scheme has availed sufficient inputs.

“We are actually in the process of distributing and 65 percent has been distributed to various deports across the country. So, we urge farmers to go back to the land.”

The Government had set the buying price of US$1,30 per kg, which was met with jubilation by the local farmers.

However, the move left ginners incapacitated given that international cotton price was at about US$1,20 per kg. As a result, the ginners said they were operating at a loss and have been failing to pay farmers their dues.

Dr Masuka said farmers would be paid through Cottco and that those unable to do tillage would be assisted by the same organisation.

“So, we urge farmers to go back to the land. The inputs are there and they will be paid what they are owed, which is $1,5 billion,” he said.

Cottco managing director, Mr Pius Manamike, recently paid tribute to the Government for the bailout and expressed hope that this year’s season would yield a good harvest.

This is in addition to the $1,8 billion the Government has already released to farmers financed under the Presidential Inputs Support Scheme.

The Government is the major financier of cotton growing through Cottco, and has announced that it is targeting inputs worth US$82 million this season to support 400 000 households.

Mr Manamike said they had been forced to look for alternative ways of paying farmers through giving them commodities they need in place of cash. He disputed claims that they forced farmers to accept groceries or products they do not want.–chronicle.cl.zw