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Precious Manomano Herald Reporter
Payments to cotton farmers have been progressing well this season with US$9,9 million and $1 billion having been paid to farmers so far, Cottco chairperson Sifelani Jabangwe said yesterday.
In a statement, Mr Jabangwe said cotton output this year was affected by erratic rainfall, but favourable payment modalities introduced this year mean the normal system of payment soon after delivery has been restored with a high foreign currency component.
Cotton farmers were paid 75 percent of their total sales in United States dollars and the remainder was paid in Zimbabwe dollars at prevailing interbank exchange rates upon delivery of the crop at any Cottco buying point.
“Whilst national cotton output declined in 2022 mostly due to poor rainfall experienced last year, the sector is forecast to rebound in 2023 due to renewed interest in cotton by farmers after the clearance of outstanding farmer payments and favourable 2022 farmer payment modalities.
“Volumes are expected to have a marginal increase due to some small crop establishment activities for the new season,” he said.
Over 50 000 tonnes of cotton have been paid for and the producer price for the current marketing season is US$0,30 plus $32 for each kilogramme delivered.
Farmers had target of 90 000 tonnes for this season, but this was greatly hampered by erratic rainfall.
In an interview, Cotton Producers and Markets Association of Zimbabwe president, Mr Stewart Mubonderi said this year was the best season for cotton farmers as they were paid with a high component in foreign currency like tobacco growers.
He said most farmers had now paid their outstanding payments from past seasons, but urged Cottco to speed up payments.
“We are very happy that farmers for the first time are getting their payments in foreign currency. We appreciate this and next year there is probability that more farmers will join cotton farming.
“Foreign currency motivates farmers a lot. No inflation can affect this foreign currency so this is the best season for us as farmers. The local currency should match the prevailing rates of that time,” he said.
“Farmers were excited this year so more will join next year. Cotton production is still ongoing because we have some areas where farmers are still picking the crop. Our target this year was affected by erratic rains, but we hope next year we can do better than this,” said Mr Mubonderi.
Mr Martin Bushe (39), a farmer and beneficiary of the Presidential Cotton Input Scheme from Alaska in Makonde, said getting a US dollar component and was a good incentive for him to continue growing cotton.
“I intend to invest my money into an income generating project. My four wives and I have agreed to buy a grinding mill while the excess will be used to purchase other things that we are lacking at the farm.”
Mr Bushe said because of the bright prospects that the cotton crop had for farmers, he was going to save some money for the rent on 15 hectares he wished to lease this coming season.
“I target to put 15 hectares under the crop as part-payment of it in forex gives us hope to continue cotton farming,” he said.
“I am quite positive that the Second Republic will make sure that our local currency becomes stable so that more farmers plant the crop,” said Bushe.
Mrs Emilia Rwodzi (80) from Gudubu in Mhangura, who was elated by her recent payment of her cotton in local and foreign currency, said she was hoping to put a bigger portion of her farm under the crop this coming season.
“I have a big family and I need more land to grow cotton and improve our livelihoods. I was elated by my recent payment of cotton in local and foreign currency. I am hoping to put more land under the crop this coming season,” she said.
Another cotton farmer, Ms Doreen Chiedza from Mauya, in Hurungwe district, who is yet to try her luck this season, said she was being motivated by the handsome payouts.
“I will try to do cotton next year as most farmers in my area and surrounding places have managed to realise more from the crop which has been referred to as white gold,” she said.
Online Reporter