Cotton farmers want immediate price talks
Zimbabwean cotton farmers have called on the Agriculture Marketing Authority (AMA) to immediately start price negotiations for the 2025 marketing season to prevent side marketing, given that some of the crop is now ready for harvesting.
They are concerned that continued delays could create fertile ground for side marketing, as desperate farmers may be forced to sell their commodity to non-contracting companies due to pressing financial needs, particularly ahead of schools reopening in the next two weeks.
“We can’t afford any more waiting. Some cotton is ready, and with schools opening soon, we desperately need these negotiations finalised now to avoid being forced into unfavourable side deals,” Cotton Producers and Marketers Association secretary general Steward Mubonderi said in an interview.
“Delaying these price discussions any further will only create desperation and push us towards side marketing.”
He said AMA needed to act “now” and convene price talks before side marketing becomes widespread.”
The negotiations process involves AMA, the regulator, cotton merchants, and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.
The outcome of the collaborative discussions would be used to make recommendations to the ministry, which ultimately sets the cotton prices.
The prices are structured into four grades, reflecting varying levels of cotton quality. However, farmers are typically paid the price for the lowest grade upon delivery of their cotton, while additional payments for higher grades come later.
However, there have been instances where some merchants have failed to pay the price differential for better grades.
“We deliver quality cotton, expecting to be paid according to the agreed grading system. It’s unacceptable when some merchants fail to honour their commitment and withhold the price difference for our better grades,” said Mr Mubonderi.
In 2024, minimum seed cotton prices ranged from US$0,32 to US$0,43 per kilogramme, depending on grade. Specifically, grade A cotton was priced at US$0,43 per kg, grade B at US$0,39 per kg, grade C at US$0,36 per kg and grade D at US$0,32 per kg.
While the Government projects cotton production to reach 60 000 tonnes this year, a significant increase from last year’s record low of 13 000 tonnes due to the El Niño-induced drought, stakeholders anticipate a yield twice that of the official forecast.
Cottco, the nation’s largest producer, which finances approximately 85 percent of cotton production through the Presidential Input Scheme, reports expecting 60 000 tonnes from its 100 000 contracted farmers.
Cotton remains one of Zimbabwe’s major export commodities and at its peak in the 2010/11 season, the country produced 352 000 tonnes.
-herald
