Cottco is processing payments to farmers for last season’s deliveries following the release of $500 million by Treasury last week.
Cottco owes farmers $2 billion and Treasury is now promising weekly payments of $500 million.
Cottco managing director Mr Pious Manamike yesterday confirmed that Treasury had released the money last Friday and farmers had started receiving their payments. “We still owe farmers $1,5 billion. Treasury has committed to release $500 million every week. So we are expecting another $500 million this week. We have started paying farmers their money.”
Cotton Producers and Marketers Association national chairperson Mr Stewart Mubonderi yesterday said farmers had started receiving their money and were looking for the regular weekly payments until the debt is paid off.
“We are grateful to Treasury for the release of the money. At least farmers are now being paid. We urge Government to release the money on a weekly basis as per their promise,” he said.
Mr Mubonderi commended Government efforts to capacitate Cottco and ensure farmers are paid timely.
“Also the announcement by the Minister that by March this year Government will be a major shareholder at Cottco is good news to our farmers. Hopefully the move will solve our perennial payment challenges
“We also welcome the US$30 per 250 kg as announced by the Agricultural Marketing Authority up from US$10 given last year. This will motivate our farmers to be more productive,” he said.
Mr Mubonderi said cotton farmers were busy weeding and spraying against pests.
“They are also receiving fertilisers and we encourage farmers not to abuse this special input but to put it to good use and get better yields,” he said.
Government is supporting cotton production in the form of free inputs under the Presidential Input Scheme.
Production of cotton is aimed at transforming rural communities with a major cash crop and having huge benefits to the economy at large as a major source of cooking oil for local consumption and cotton fibre for export markets.
Cotton is a strategic crop that is interwoven into the rural economy and the national economy as it is a cash crop for many farmers, particularly those in drought prone areas.
The crop provides lint for downstream textile industries, seed for cooking oil, and generates export earnings.
Seed residue after the oil is extracted for human consumption is used in animal feeds.
The intervention by Government on cotton production through the Presidential Inputs Scheme was meant to revive the sector, which was collapsing due to low prices offered by merchants and other problems related to inputs.
Most farmers in cotton growing areas had abandoned producing the crop after prices fell and merchants had reduced input packages citing side marketing by farmers and this further affected production.
