Online Reporter
Word From The Market
Tina Nleya
THE 2025 cotton marketing season is officially open. It will run from June 1 to July 15, providing local cotton farmers with the opportunity to sell their hard-earned crop.
The Agricultural Marketing Authority (AMA), in collaboration with licensed contractors and various stakeholders, has put in place measures to ensure a transparent, efficient and secure marketing process for all involved.
Cotton, often referred to as “white gold”, plays a pivotal role in Zimbabwe’s rural economy.
Despite last season’s sharp drop in output due to the most severe drought in over four decades, this year promises a rebound in production and renewed hope for growers.
But, even as Zimbabwe prepares for a productive marketing season, international cotton price dynamics remain challenging.
Below, we will look at what farmers need to know about the current marketing season — and how to navigate it wisely.
International price pressures
Zimbabwe is, by nature, a price taker on the global cotton market.
International lint prices have seen a downward trend in the past year, driven by several factors, such as high global stocks following large harvests in India, Brazil and the United States, as well as weakening demand by key textile manufacturing countries due to economic slowdowns and high inflation.
Geopolitical tensions have also impacted shipping routes and export timelines.
As a result, average global cotton prices dropped by more than 15 percent in the first quarter of 2025 compared to the same period last year.
This decline has directly affected the viability of prices that local contractors can offer to Zimbabwean farmers.
In response, the Agricultural Marketing Authority (AMA) and stakeholders engaged in negotiations to ensure that farmers still receive fair and viable returns.
The minimum cotton prices for the 2025 marketing season, payable in foreign currency, are as follows:
Grade A: US$0,41 per kg
Grade B: US$0,37 per kg
Grade C: US$0,34 per kg
Grade D: US$0,30 per kg
While these prices reflect global market realities, AMA is also advocating for the establishment of a price stabilisation fund to cushion local farmers from international price shocks in future seasons.
A streamlined, secure cotton marketing process
This season, cotton marketing will take place exclusively at 697 AMA-designated common buying points (CBPs). These are made up of 221 permanent points and 476 mobile ones spread across the country. Farmers must deliver their cotton at these points only, and sales will be verified against AMA’s central database to ensure accountability.
The key modalities in place include:
No payment, no movement: No seed cotton will be moved from a CBP until full payment has been made to the farmer.
Database tracking: Only registered farmers in the AMA database are allowed to sell.
Farmer identification: National identity and contract verification are mandatory during vetting.
Contractor payment channels: All contractors must ensure payment platforms are within reach of the buying points to speed up disbursements.
These measures aim to curb side marketing, improve transparency and protect farmers from exploitation.
Side marketing: A threat to the industry
Side marketing — the practice of selling contracted cotton to unauthorised buyers — remains a pressing issue in the sub-sector.
This year, AMA is taking a zero-tolerance approach. Any seed cotton sold outside the designated CBPs will be confiscated.
Those involved in illegal trading will face criminal prosecution, deregistration and public naming and shaming.
Furthermore, contractors are obligated to finish paying last season’s dues, including grade differentials, before they are allowed to purchase any cotton this season.
This requirement ensures that farmers receive what they are owed and discourages contract breaches.
Strengthening contract farming system
Zimbabwe’s cotton is primarily produced under contract farming arrangements, where ginners supply inputs and farmers commit to delivering their harvest.
These contracts are legally binding, and, according to Statutory Instrument 63 of 2011, no other buyer may purchase cotton from a contracted farmer.
There are also self-financed farmers, but for this season, AMA reports that no free farmers were registered by the December 31, 2024 deadline — and no proof of input purchases was submitted.
As a result, all cotton for this marketing season is treated as contracted, reinforcing accountability throughout the system.
Local solutions
With international cotton prices fluctuating, Zimbabwe must strengthen its domestic systems to remain competitive.
That includes:
Investing in quality control to attract better prices and retain export markets.
Exploring regional partnerships to tap into higher-value African textile initiatives.
Encouraging the adoption of value addition at local ginneries and textile producers to reduce reliance on raw lint exports.
The success of the 2025 cotton marketing season hinges on discipline, cooperation and adherence to best practices.
AMA calls on all farmers to deliver only to designated points, honour their contracts and resist the temptation to engage in side marketing.
By doing so, farmers not only protect their income and access to inputs, but they also contribute to the integrity of Zimbabwe’s cotton industry as a whole.
Tina Nleya is AMA’s marketing and public relations manager. She can be contacted on: [email protected]. Word from the Market is a column produced by AMA to promote market-driven production.
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