Business Reporter
COTTON farmers have welcomed the new base price for cotton saying this would go a long way in encouraging farmers to expand hectarage in the next season. Last week, the Government, which financed the bulk of the crop under the Presidential Input Scheme raised the base price for the crop from 40c per kg to 47c per kg.
This is over and above 18c per kilogramme invested through the input subsidy. The farmers are also entitled to a 5 percent export incentive to be paid by the Reserve Bank.
This move will also go a long way in curbing side marketing as the new base price will match what is offered by private players. Some private players, taking advantage of having not invested much into production were offering slightly higher prices to entice farmers into side marketing.
Cotton Producers and Marketers Association of Zimbabwe chairman Mr Stewart Mubonderi said: “We really want to thank Government for the upward review of the cotton price and we are certainly going to see more farmers planting next season.
“We also expect new farmers to come on board and this will go a long way in reviving the sector.
Cottco managing director Mr Pius Manamike described the new price as a “major boost” for farmers.
Last week, the company held some interactive meetings with farmers in Chiredzi where officials urged them to desist from side marketing. Mr Manamike said those who had already delivered their crop at a base price of 40c per kg would be given adjustments.
“We are going to first prioritize those who have already delivered their crop at 40c per kg,” said Mr Manamike while appealing to farmers to deliver their crop to Cottco.
“This programme can only be sustainable if you deliver the crop to Cottco. Don’t side market.”
Head of operations Mr Max Njanji urged farmers to grade their crop so that their cotton would fetch higher price. “We are challenging you to grade your cotton so that you can get good prices,” said Mr Njanji.
“We are very happy that this year we are receiving good quality crop particularly in Muzarabani where 60 percent of crop delivered is of A grade.
He said farmers who received inputs from Government should deliver their crop to Cottco to qualify for another free input programme next season. “The Government is going to give you free inputs next season.
“We urge you to deliver the crop to Cottco so that you will be registered for the next free inputs programme,” said Mr Njanji.
Several farmers who benefited inputs from the Government pledged their loyalty to Cottco. “They are coming to us (private companies) telling us to sell our cotton to them,” farmer Mr Gerald Nyabasa said.
“Some are offering slightly higher prices than what Government is paying. But we are not going to be fooled because Government gave us free inputs for two season in a row and we are getting free inputs next season. As farmers, we have been encouraging each other not to side market.”