Govt eyes controlling shareholding in Cottco
THE Government will in the next two months complete a transaction to increase its shareholding in Cottco to a controlling interest, an official said, as it seeks swaying influence inthe country’s largest cotton firm.
The transaction would be completed by July 1 this year, Lands, Agriculture, Water, Fisheries and Rural Development Minister Dr Anxious Masuka said while delivering speech at a cotton grower of the year event in Chinhoyi last week where he also announced plans by the Government to promote the development of high yielding cotton seed hybrids.
Last year, the Government, which has been funding cotton production since 2014 under the Presidential Free Inputs Scheme approved to raise its equity to 51 percent from 37 percent.
“The majority shareholding in Cottco will legally empower the Government to provide more funding to the company,” Dr Masuka said.
He said the Government, through the Cotton Research Institute, was looking at developing hybrid seeds, but in the meantime will import them from India. Already there are growing calls from farmers and various stakeholders seeking increased use of hybrid seeds.
Farmers said the Government should scale up the use of high-yielding cotton hybrid seeds to lift productivity and cut the risk of crop failures as traditional open varieties (OPVs) were getting more susceptible to recurring droughts, pests and diseases.
Feasibility studies on the use of hybrid seeds has shown that production could increase to as much as 600 000 tonnes per year.
Last year, Zimbabwe produced 130 000 tonnes of the fibre and indications are that production may fall this year due to poor rains in most cotton producing regions.
Cottco requested the Government to buy more hybrid seeds and Dr Masuka said he had already held a meeting with Finance and Economic Development Minister Mthuli Ncube on the matter.
He also engaged India’s Ministry of Agriculture and Farmers’ Welfare, where Zimbabwe is importing hybrid seeds. Dr Masuka apologised to farmers for late payments for last year’s cotton deliveries and said all outstanding payments have finally been paid.
Going into the next season, the minister assured farmers of timely payments with 75 percent of their earnings paid in US dollars, just like tobacco farmers while the remainder will be paid in domestic currency. The prize for this years’ winner, Mr Peter Mhlauri, was a 75 tractor horsepower, a four wheel trailer and a three disc plough.
Speaking at the event, Mr Mhlauri urged youth to venture into cotton production, taking advantage of the free inputs and tillage services. “Please come and join us…this programme is not leaving anyone, including the youth. Lets take advantage of these Government programmes to empower ourselves.”-herald.co.zw
