Cotton farmers appeal for prompt payments

Zimbabwean cotton farmers have appealed to the Government to timeously pay its portion of the producer price for the current selling season to preserve the value of their earnings for cotton deliveries.

Recently, prices of most household commodities shot up in response to an increase in foreign currency parallel market exchange rate and farmers are worried if the trend continues, they may not be able to realise the full value of their money.

Notably though, expect the inflation rate to continue falling in tandem anchored by a more stable exchange rate, monetary and fiscal discipline (to control liquidity), to between 22 and 35 percent by year end, from 56,37 percent last month.

The farmers argue that there is a huge disparity between the parallel market exchange rate of $140:1 USD and the official auction exchange rate of $88:US$1.


Most businesses are thus pegging Zimbabwean dollar prices using the black market rates. For the lowest grade (D) price of $55 per kilogramme, the Government is paying 40 percent of the amount while the remainder is to be paid by the Cotton Company of Zimbabwe.

Grade A price is $85 per kg while B is paid at $70.

Cottco is the vehicle used by the Government to implement the State-sponsored free inputs scheme for farmers.

The scheme, which started in 2015 is meant to boost Zimbabwe’s cotton production, one of the most valuable agricultural export commodities as well as helping rural families transform their livelihoods.

At the time the Presidential Support Scheme was introduced, production had fallen to 28 000 tonnes annually, the lowest in nearly two decades from a peak of 351 000 tonnes in 2011.

“For the lowest grade we are being paid $36 per kg and US$10 for every bale. We have been promised that the remainder will come from the Government and we will be grateful if we get it on time,” said Mr Luxon Jairos from Mbire District.


He, however, applauded the Government for settling last year’s outstanding payments. “I have received all my dues,” Mr Jairos added.

Mr Filton Fewe, who farms in Mahuwe in Mashonaland Central Province, said the 2021 marketing had progressed “very well” but urged the Government to timely pay its portion before the value of their money is eroded.

A Mt Darwin farmer Mr Peter Nyamudo said the inputs farmers were being given under the Presidential Inputs Scheme were not enough and appealed for a bigger package to boost yields.

Benefiting from timeous distribution of inputs and better rainfall, area planted for cotton increased by 37,5 percent to 239 619 hectares in the 2020/21 season, from 174 212 hectares, as farmers responded well to the Government incentive aimed at resuscitating the cotton to clothing value chain.-heraldc.l.zw

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