Delayed payments cast shadow on Zimbabwe’s cotton industry

Cotton farmers in Zimbabwe are fuming over delays by the Cotton Company of Zimbabwe (Cottco), the country’s primary cotton financier, in settling outstanding dues of nearly US$5,5 million for the commodity delivered last year.

This is the latest instance of neglect by Cottco, according to the farmers, who have endured repeated frustrations.

Cottco finances about 85 percent of the country’s cotton production through the Presidential Inputs Scheme.

Under the scheme, cotton farmers get free inputs such as fertiliser, seed and chemicals.

The unpaid dues add to existing financial burdens and threaten the livelihoods of many families who depend on cotton as their main source of income.

The situation has created a tense atmosphere between farmers and Cottco, with calls for swifter action to clear the outstanding payments.

Frustration is mounting among cotton farmers in Checheche, Zimbabwe’s eastern region.

They have not received payment for cotton delivered last season, despite remaining loyal to Cottco and delivering their current harvest.

“We delivered bales last season but have not received the money,” John Dhliwayo, a farmer in Rimai areas said.

“We are still loyal to Cottco and we are still delivering this season’s crop, but our main issue is last season’s payments.”

The delays have created a financial strain on the farmers.

“Every time we go to ask for the money, we are referred to the (Cottco) Harare head office,” said Dhliwayo.

“We also used labour and have not paid those who worked for us. I had to find a job elsewhere to look for money to pay for the labour.”

He said his situation is not an isolated case.

“It is not an issue of one farmer; about three-quarters of the farmers in this area have not been paid. Telling us to travel to Harare – where are we going to get the money from?

“We have debts that we accumulated.”

The situation is no better in Chiredzi, another major cotton-producing district.

Farmers there echo the grievances of their counterparts in Checheche.

“We are owed a significant amount by Cottco for last season’s crop,” a Chiredzi farmer, who identified himself as Mafukidze, said. “Our families are suffering.”

This week, Cottco said it had paid US$1,5 million and ZiG 2 million for cotton deliveries this year.

Outstanding payments last year are at US$2,5 million and ZiG 38 million.

This season alone, Cottco owes farmers US$2,6 million and nearly ZiG42 million.-ebusinessweekly