Online Reporter
Edgar Vhera
Cotton growers have sold more than US$3 million worth of crop to Cottco as the marketing season progresses.
Cottco acting chief executive officer, Mr Rockie Mutenha said the company was paying farmers in foreign currency.
“We have bought over US$3 million worth of seed cotton across the country at the grade D price of US$0, 30 per kilogramme. As a result of the drop of US$0, 02 in grade D price from US$0, 32 per kilogramme for last year, we are paying our growers 100 percent in foreign currency,” he said.
This season, farmers were supposed to get 70 percent of their payment in foreign currency and the remaining 30 percent in local currency.
Cottco and other merchants petitioned Government to allow them to pay the whole amount in hard currency due to the drop in international prices.
Cotton is a major source of livelihood for approximately 2 million people in Zimbabwe.
The crop contributes immensely to income and employment creation while contributing to foreign currency earnings.
Cotton provides raw material for oil expressing, knitting, spanning, weaving and stockfeed industries.
At least 63 000 tonnes of cotton are expected this season.
This is a significant increase from the previous year production of 13 000 tonnes.
