Cottco clears 2020 farmer payments

THE Cotton Company of Zimbabwe (Cottco) said on Wednesday that it has paid in full monies owed to farmers for 2020 cotton deliveries while $3,1 billion has so far been paid for 2021.

Cottco managing director, Mr Pious Mananike, said the Treasury has released the funds to clear all the arrears and that a majority of farmers have now received their full dues except those who had not submitted their banking details.

“We are pleased to report that, following the release of funds by treasury, farmers have now received their payment in full for the 2020 deliveries,” he said.

Cottco was owing $1,5 billion to famers from last year’s deliveries, which were done when the cotton producer price was set at $43,94 (US$1,75) per kg.

The company had cash flow problems at the time prompting the Government to intervene following an outcry by farmers.

Mr Mananike said $316 million was set for farmers who had not submitted their functional bank accounts or mobile money accounts but only those owed $104 million submitted their banking details.

“We encourage farmers owed the remaining $212 million to approach the nearest Cottco depot and provide payment details so that transfers can be made and cotton farmers association to advice their members accordingly,” he said.

Meanwhile, Cottco has started paying the first batch of famers for the 2021 deliveries at $34 per kg including US$10 per 200kg bale.

“Cottco has to date released $3,1 billion towards the payment for 2021 and the price of $34 per kg exceed the regional average of US$25 cents per kg,” said Mr Mananike.

The second batch receives $22 per kg as a subsidy incentive with additional tranches expected to be released on a weekly basis.

“As previously agreed, farmers are being paid in three tranches and the third tranch is for farmers with grade A and B seed cotton who are going to be paid a top up in the form of grade adjustment,” said Mr Mananike.

“We would like to appreciate cotton farmers for their hard work and patience, which has seen cotton output grow from 82,4 million tons in 2020 to 115 million tons in 2021 with the support of the Government,” he said.-The Chronicle