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Tariro Stacey Gatsi
NEGOTIATIONS for the 2024 cotton prices are heating up with the Agricultural Marketing Authority (AMA) currently engaging ginners and farmers to negotiate and determine prices, grading modalities and necessary adjustments.
The negotiations are expected to pay the way for the adoption of a pricing structure that accurately reflects the market value of cotton while considering various factors such as production costs, payment modalities and prevailing industry trends.
AMA business director Mr Jonathan Mukuruba said deliberations on the matter were in progress with AMA actively involved as the regulator.
“We are optimistic about concluding the negotiations this week then wait for the final decision from the Minister of Lands, Agriculture, Fisheries, Water and Rural Development,” he added.
Cotton Producers and Marketers Association chairman, Mr Stewart Mubonderi said the ongoing negotiations were meant to address farmer viability issues in the industry and make necessary grade adjustments.
“The main objective is to tackle issues that have been negatively impacting farmers’ viability. Additionally, payment modalities are being discussed as some farmers are receiving payments through platforms located far from them,” He added.
Meanwhile, last season’s cotton payments were partially paid in foreign currency at US$0, 30 per kilogramme and $32, 50 for local currency. Grade differential prices were not included in last season’s pricing package.
The 2022/23 pre-season cotton grade differential prices at US$0, 40 for grade D, US$0, 41 for grade C, US$0, 43 for grade B and US$0, 46 per kilogrammes for grade A in a move meant to encourage production of a high quality crop.
In its recent trading update from September 1, 2023 to January 31 this year, Cottco said international lint prices rebounded from a low of US$1, 65 per kg at the beginning of November 2023 to current levels of US$1, 87 on the back of increased demand with top cotton consumer China accounting for more than half of the net sales.
Cottco company secretary Ms Eunice Mupanduki said oilseed prices remained firm during the period with demand for ginned seed locally surpassing supplies.
“Local and offshore lint customer collections are still underway with 7, 776 tonnes of lint in stock. Ginned seed on hand is 4, 642 tonnes and upliftment by seed suppliers and oil expressors is underway,” said Mrs Mupanduki.
As Cottco expands its value addition drive, for better prices and increased earnings, 475 tonnes of lint have been converted to yarn since April 1, last year, continued the update.
Online Reporter