Cotton bales
THE Government has announced a $0.55 per kilogramme pre-planting cotton producer price which includes a bonus of $0.10.
The Cotton Company of Zimbabwe (Cottco) would before end of the year start giving 10 cents adjustment to farmers who sold their cotton this year, ZBCtv reported.
Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made told the national broadcaster on Tuesday night that the Government had pegged a pre-planting producer price of cotton at 45 cents plus a 10 cents bonus making it 55 cents per kilogramme.
The Zimbabwe Farmers’ Union has since welcomed the announcement of the new producer price.
“The announcement of the new cotton producer price is a step in the right direction and we look forward to seeing private cotton buyers complying with the minimum producer price.
“The announcement gives farmers time to plan.
“We are also expecting to see Cottco paying the outstanding money of cotton deliveries made in the last marketing season. If payments are made on time that would boost the farmers’ confidence,” said a ZFU official who declined to be named.
In a related development, Cottco acting managing director Mr Pious Manamike has revealed that the company was finalising modalities to pay farmers who delivered their crop a 10 cents adjustment before end of the month.
The company has also announced that it has started disbursing top dressing fertiliser under the presidential input scheme.
Statistics released by the company show 6 000 tonnes of cotton seed and adequate basal fertiliser have been distributed, which is enough to cover 300 000 hectares targeted this season.
The national cotton output is forecast to jump over 400 percent to about 150 000 tonnes in the upcoming season on the back of free inputs to cover about 150 000 farmers.
Last year, the country recorded an output of 30 000 tonnes, the lowest in more than two decades, with yields mostly affected by the drought, which hit several southern African countries.
Cotton production peaked during the 2011/12 when farmers produced 353 million kg.
The cotton sector used to support about 400 000 households, making it one of the largest employers in the country. — ZBC/Business Reporter