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agree on the price, CGA director Mr Godfrey Buka said deliveries were encouraging.
“We do not yet have the actual value of the crop that has been delivered so far, but we were at 110 million kg last week,” he said.
Cotton deliveries started without an agreed price structure due to a deadlock on minimum prices between farmers and buyers. In the absence of the traditional pricing
structure, market forces are determining prices as well as a negotiated basis between farmers and cotton merchants. During the negotiations, which lasted two months,
cotton growers wanted a minimum price of US45c per kg, while buyers, who contracted the bulk of the current crop, offered US29c.
Globally, cotton farmers experience similar challenges, with producer prices. But some countries, such as the US, have managed to keep their farmers in production by providing subsidies. China also subsidises producers to keep them motivated. Countries such as India have become more competitive through use of biotechnology.
Zimbabwe’s cotton output is expected to rise from
250 000 tonnes produced late last year to about 280 000 tonnes this year.
Online Reporter