adminCotton merchant Grafax says it has regained its license which had been revoked by the Agricultural Marketing Authority after it failed to meet contracting requirements.
AMA set a minimum funding requirement of US$1 million per merchant for the production of this season’s crop among other obligations.
Grafax, together with Parrogate, were suspended from contracting cotton farmers about two weeks ago. “Grafax has since made a presentation to AMA on the case and AMA has lifted the de-registration and also advised us to comply with the contract farming requirement and continue with the distribution of inputs to our contracted farmers,” it said.
“Grafax is fully committed to follow the AMA directives in letter and spirit and the input distribution program of Grafax will follow the law of the land.”
AMA introduced the new minimum funding requirement to enhance cotton output.
Government has also put measures to promote orderly marketing of the crop as contractors will only be allowed to purchase seed cotton in areas where they would have provided funding. Funding for cotton farming declined from about US$44 million in 2011 to US$22 million in 2013 largely because some merchants had lost some of their crop through side marketing.
The Cotton Ginners’ Association is targeting to contract cotton growers to produce 250 000 metric tonnes in the 2013/14 cropping season.
Cotton production sustains about 300 000 households in Zimbabwe — New Ziana.
Online Reporter