‘Grades to determine cotton pricing regimes starting next year’

Edgar Vhera
Agriculture Specialist Writer

FOLLOWING the outcry by stakeholders in the clothing and textile industry on the poor quality of seed cotton produced by local farmers, Government will from next year start paying grade-based prices.

Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka yesterday said cotton contractors would start paying grade-based differential prices to increase the production of quality seed cotton for the country starting from next year.

The paying of seed cotton purchases on a sliding scale from a high price for grade A to D in descending order will surely act as an incentive to whet farmers’ appetite to produce quality cotton.

At this year’s World Cotton Day celebrations on October 7, clothing and textile firms indicated that the bulk of the lint that they get from ginners was of poor quality and only suitable for making products like work suits and not executive shirts.

Spinners Association of Zimbabwe chairman Mr Shadreck Muhoni cited increased cotton to clothing value chain financing, quality reward in cotton grading and payment on time with a stable currency as being crucial to revamp the cotton to clothing value chain.

Though acknowledging the importance of Government support to farmers, he said there was need to play the smart leading role of supporting the whole cotton value chain.

“The spinners are making a clarion call to ginners to display regularly information on cotton quantity and quality, as this will assist in scouting for exports,” said Mr Muhoni.

He went on to say Government could accelerate the cotton to clothing value chain by offering incentives such as tax breaks, discounts and duty exemption to would be investors.

This just ended season, farmers who produced better quality cotton are expecting to receive additional income on top of the US$0,30 and $32, 50 per kg they received when they delivered their graded cotton.

All farmers have been receiving payments for seed cotton categorised as grade D regardless of quality differences in recent seasons.

Agricultural Marketing Authority (AMA) chief executive officer Mr Clever Isaya disclosed that in accordance to Statutory Instrument 188 of 2022, Section 10(f), merchants are supposed to pay growers grade differential prices for their seed cotton deliveries after grading seed cotton by November 30 each year.
However, what cotton farmers will get for the price differential is only at the discretion of the contractor.

Statistics from AMA indicate that the portion of lowest grade seed cotton has increased from 45 percent in 2017 to 66 percent in 2021. In 2021 the second lowest grade (grade C) percentage was 28 percent with grade A and B only accounting for a mere combined total 5, 7 percent.

Seed cotton grades (2021, AMA)

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