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Edgar Vhera Agriculture Specialist Writer
COTTON marketing and processing concern, Cottco, is on course to clear all farmers’ outstanding payments from the 54 000 tonnes of seed cotton delivered to date and also pay for any other purchases for this marketing season after the Government availed US$30 million for the purpose yesterday.
Cottco board chair Mr Sifelani Jabangwe revealed this after receiving communication that cabinet had resolved to disburse the fund in addition to the initial US$8 million secured earlier.
“Cabinet has resolved to avail US$30 million for seed cotton purchases for the 2023 cotton marketing season. The US$8m constitutes 40 percent of the required amount for the 54 000 tonnes of seed cotton so far delivered to Cottco,” said Mr Jabangwe.
Cottco expects to purchase 96 000 tonnes of seed cotton by end of season valued at US$38 million at the grade D price of US$0, 40 per kilogramme.
Ginning has since started in Chiredzi, Gokwe, Muzarabani while Sanyati will follow soon.
Mr Jabangwe said the purpose of yesterday’s engagement meeting with farmer unions was to discuss issues affecting Cottco and farmers.
He said Cottco ginned the crop from May and got payments from exports right at the end of the season in the last quarter of the year while farmers must be paid soon after delivering their produce.
“We have to borrow from financial institutions and repay after we receive our payments. Cottco has so far managed to secure financing facilities but liquidity challenges have negatively impacted on fund disbursements to farmers resulting in delayed or non-payments of some farmers,” said Mr Jabangwe.
The Cottco boss said through engagements with Government, Cottco had managed to secure 40 percent of the money required to pay for the farmers’ deliveries.
Unlike last year when farmers were paid in cash, payments for this are being done through various platforms to avert cash robbery.
Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya said their members were worried over the delayed or non-payments for their produce.
“Now that the required resources for seed cotton purchases have been availed, farmers need to be paid on time and in full. Timeous payment will avert the scourge of farmers engaging in side marketing,” said Mr Zakariya.
Cotton Producers and Marketers Association chairman, Mr Stewart Mubonderi highlighted that the purpose of the meeting was to look into challenges such as delayed payment, inaccessible payment modalities and shortages of woolpacks faced by farmers.
“Cottco has assured us that enough woolpacks are now in the country awaiting distribution to cotton farming areas. This distribution has to be prompt, as farmers are losing cotton due to fires, poor storage practices and weight loss,” he said.
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