KWEKWE – Cotton farmers and producers in Zimbabwe have reached an agreement on a 2024 producer price of US$0.32 per kilogram, according to Samson Chigaba, the Secretary-General of the Cotton Producers and Marketers Association of Zimbabwe (CPMAZ).
This new price now awaits official approval from the Minister of Agriculture.
The agreement was reached after discussions with various cotton buyers, including the Cotton Company of Zimbabwe (Cottco), Zimbabwe Cotton Company (ZCC), Shawasha, and Agri Value Chain, among others. In addition to the new price, it has been agreed that farmers will receive payments for their cotton deliveries on the spot, with payments also backdated for the last three seasons.
“We have 420,000 cotton farmers, and this year we met with all buyers and agreed on a price. The initially proposed price was $0.20 per kg, but we settled on US$0.32 per kg,” Chigaba stated.
“There is also a condition that buyers should backdate payments for the last three seasons before we sell this year’s produce, and this must be done by 30 May. We also agreed that they make full payments on the spot, and if they do not pay on delivery, we will hold our crop until we get the payment.”
Chigaba noted that the quality of this year’s cotton crop was adversely affected by the El Niño-induced drought.
“They argued that they cannot increase the price from 32 cents to anywhere near 40 cents because the quality of our crop was affected by the drought,” Chigaba explained.
The agreement marks a significant step forward for Zimbabwe’s cotton industry, ensuring fair compensation for farmers while addressing the challenges posed by adverse weather conditions. – Masvingo Mirror
