Govt announces cotton price

This followed an impasse between buyers and farmers over a viable price for the crop.

Cotton growers will sell the crop at US77 cents for a kg of grade D, US79 cents for grade C, US81 cents for Grade B and US84 cents for grade A.

Announcing the Cabinet position to farmers and ginners, Agriculture, Mechanisation and Irrigation Development Minister Joseph Made said the farmers should not sell the crop at a price below the cost of production.

“We are not seeking any negotiations,” he said. “This is the price for the 2011/12 season and no farmer should be paid less.

“Ginners who do not comply with this position will have their licences cancelled. This is final and there is not going to be any debate.”

Minister Made said farmers who sold the crop at US29 cents per kg that is being offered by ginners should get back pays.

He said farmers submitted their production costs through their unions, while ginners individually presented their cost of production.

“Now the onus is on farmers’ unions to advise farmers on Government position,” said Minister Made.

He said it was unfortunate that ginners maintained a hard position over the past months.

“Ginners are the industry and they should know the impact of not having a farmer, the impact of a farmer not being able to go back to the land,” said Minister Made.

“Ginners are the ones who contract farmers and control prices of inputs, so they should pay the cost of production.

“The burden has been put on the farmer as there is no mark-up on the price, but just the cost of production.”

Minister Made said it was unfortunate that ginners were buying cotton at low prices and farmers did not have any say.

“Government has taken note of this and will not allow the farmer to perish,” he said.

Zimbabwe Farmers Union vice president Mr Berean Mukwende said they had waited for too long for Government’s intervention.

“We are grateful to Cabinet that at least Government has come up with a clear position that benefits all sectors,” he said.

Zimbabwe Commercial Farmers Union vice president Mrs Maideyi Maswi said farmers welcome the new prices.

“These better prices will cushion farmers from the problems they have been experiencing and hopefully they will be able to go back to the land next season,” she said.

Mrs Maswi said the only lasting solution to the cotton challenges was value addition.

Zimbabwe National Farmers Union vice president Mr Stanslays Goredema said he hoped that farmers who sold the crop at low prices will be compensated.

He said Government should subsidise farmers.

Cotton buyers said they were yet to come up with a coordinated response to the new prices.

“I have no comment yet since we have not discussed with our principals,” said SinoZim general manager, Ms Memory Magure.

Cottco managing director, Mr David Machingaidze, said he was not in a position to give a comment.

The impasse between cotton farmers and ginners dragged for months, resulting in the Agricultural Marketing Authority setting a price of US35 cents per kg.

But Minister Made said AMA did not have the authority to announce prices.

Ginners then went ahead and started buying cotton from farmers at US29 cents per kg.