Online Reporter
Martin Kadzere
Cotton buying prices for the upcoming season have been set at US30cents per kilogramme, from last season’s US32c following extensive negotiations between Government, ginners and farmer organisations.
The agreement, reached in response to declining global lint prices, will see payments made at common buying points. The buying season is scheduled to commence in the first week of next month.
The discussions involved six farmer organisations with five including the Zimbabwe Farmers Union and the Zimbabwe National Farmers Union, agreeing to the new price. However, the Cotton Producers and Marketers Association objected and wants the price to remain at US32c.
“Global lint prices, along with ginning and shipping costs, were the main factors determining the prices,” said a local merchant executive.
“It’s, however, important to note that US30c per kilogramme represents the minimum price, with farmers eligible for additional payments (differentials) determined by the grade of their cotton.”
Global lint prices are down to about US67c per pound from around US87c per pound the same period last year.
Professor Obert Jiri, the Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, represented the Government in the negotiations.
A proposal by The Cotton Company of Zimbabwe for 70 percent of the payments to be made in ZiG was rejected by other stakeholders.
