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Cotton farmers are still holding on to their crop in protest against low prices offered by ginners.
Government has since declared cotton a controlled commodity, giving it power to fix the price for the crop.
However, officials in the cotton industry told the Parliamentary Portfolio Committee on Agriculture, Water, Lands and Resettlement on Tuesday, Government would only set a price if the stakeholders failed to reach an agreement.
“Government has told us that we should negotiate first,” Zimbabwe Commercial Farmers Union (ZCFU) vice-president Mayideyi Maswi told the committee.
“Our last meeting is on the 22nd (of June) and we have to agree, if we do not agree then Government will come in.”
Maswi, who was part of a group representing cotton farmers, said farmers were, however, unsure whether Government intervention would benefit them or not. “When Government sets the price, it can be to our advantage or disadvantage, we really do not know,” he said.
Farmers are demanding to be paid $0,45 per kg for Grade D cotton, $0,47 for Grade C, $0,51 and $0,55 for Grade B and A respectively.
On the other hand, ginners, who are also the contractors and buyers at the same time, are offering to pay $0,29 for Grade D, $0,31 for Grade C, $0,35 and $0,40 respectively for Grades B and A.
Observers have said the threatened intervention by Government might have been aimed at forcing the partners to come to an agreement sooner rather than later.
Government itself is unlikely to be in a position to buy the cotton from farmers due to serious budgetary constraints.
In terms of Statutory Instrument 106A of 2012 published by Government, if buyers fail to pay the amount set by Government, then they will make an application for reimbursement of their inputs from the Grain Marketing Board (GMB).
Maswi said the current disagreements were based on costing differences between farmers and ginners.
The cotton farmers complained bitterly, alleging exploitation at the hands of ginners.
They accused the ginners of creating a monopoly in the sector.
They told the committee that it would benefit the sector if Government allowed more competition in the sector by allowing independent buyers to come in.
Current laws governing the sector, which were aimed at preventing side marketing of the crop, force farmers to sell the crop to the contractors.
“We would want the legal framework to provide registration of independent buyers to promote competition,” said Clemence Gondo, executive chairman of the Cotton Producers and Marketers Association of Zimbabwe.
The farmers also accused the contractors of failing to give them adequate inputs.
Meanwhile, the farmers took a swipe at the police for allowing some of its members to be used by contractors to force farmers to surrender their harvest.
Gondo said a number of cases had been reported where police were accompanying buyers to forcibly collect cotton from farmers.
Members of the committee also expressed concern on the situation.
They proposed to meet the ginners as well as the Competition and Tariff Commission to map a way forward for the sector.
Cotton is Zimbabwe’s second major agricultural export after tobacco. — New Ziana.
Online Reporter