Online Reporter
Edgar Vhera
THE Agricultural Marketing Authority (AMA) has instructed all cotton contractors to pay growers grade-based price differentials for crop quality improvement.
This comes as the industry has rolled out the 2026 seed cotton grading standards.
The standards’ unveiling exercise was recently done in conformity with Statutory Instrument (SI) 142 of 2009.
The exercise is meant to maintain grading consistency.
AMA agribusiness director, Mr Jonathan Mukuruba, said the quality of seed cotton had been on the downside over the years because of several factors, chief among them, the non-payment of differentials.
“Lack of grade differential payments has demotivated farmers to pre-grade their seed cotton, with only one per cent in the grade A category last year.
“Drought and poor rainfall pattern, leaf trash, weak or immature fibres and insect stain (due to lack of adequate application of chemicals) are also to blame for the decline,” Mr Mukuruba said.
“These poor grades call for greater and more concerted efforts by all concerned parties in ensuring that differential grade prices are paid. Our farmers should be trained in cotton grading to ensure minimum contamination of seed cotton,” he added.
Mr Mukuruba said payment of grade differential prices would go a long way in motivating farmers to exercise pre-grading at the homestead level, leading to improved cotton grades and pricing structures. This will also boost farmer earnings and strengthen Zimbabwe’s position in the global cotton trade.
According 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 by November 30 each year.
Cotton Producers and Marketers Association chairman, Mr Stewart Mubonderi, said there was no incentive for farmers to produce grade A quality cotton as prices were paid using the lowest grade D price.
“Since the 2023 marketing season, a lot of the farmers were not paid their grade-based price differentials from their contractors, contrary to the government’s directive.
“Even with AMA threatening contractors that they will not be able to buy seed cotton if they are in arrears on grade differentials, the merchants get registered anyway and purchase the product without making any payment. This dampens the spirit of the farmer to produce a quality crop, with some even shifting to other crops like sesame,” he said.
Cotton Council of Zimbabwe (CCOZ) national coordinator, Mr Cliffet Mangena, said farmers were rational people and would not spend time grading a crop they knew would be paid using the lowest grade D price, irrespective of the quality,” he said.
The government introduced a grade-based pricing model during the 2023 marketing season.
Last season, grade A was bought at US$0,41 per kg, with grade B at US$0,37 per kg, while grade C received US$0,34 per kg and grade D paid US$0.30 per kg.
Many farmers are still pinning hopes on the pledge by Mutapa Investment Fund (MIF) to settle all arrears owed to farmers by Cottco from debts incurred since the 2022/23 season.
MIF chief executive officer (CEO), Dr John Mangudya, appearing before the Parliamentary Portfolio Committee on Lands and Agriculture in July last year, disclosed that his organisation would clear Cottco Holdings’ legacy debts within six months.
The MIF pledged to ensure Cottco paid its legacy debts, which are money owed to workers (US$3,1 million), transporters (US$1 million) and farmers (about US$6 million).
Cotton is important because of its contributions to the textile industry, edible oil and stock feeds manufacturing.
