Zimbabwe: Late Opening of Cotton Market Affects Farmers

Zimbabwe: Late Opening of Cotton Market Affects Farmers

Some cotton farmers have expressed concern over the late start of the marketing season as Government is yet to announce the producer price for this year.

The season normally starts end of April and runs until September, depending on the amount of yields.

Government has not yet announced price of one of the country's largest foreign currency earners amid growing worries that this may endanger their crop due to lack of proper storage facilities.

Last week, the Government said it was considering a subsidy on producer price after world prices plunged due to coronavirus.

The Agriculture Marketing Authority (AMA) chief executive Mrs Nancy Zitsanza, told The Herald Finance & Business that "preparations were at an advanced stage" for the intake season, but could not provide specific time. AMA regulates the cotton sector.

Early this month, global lint price plunged to lowest levels since the global financial crisis in 2008 due to coronavirus, denting growth prospects of Zimbabwe's cotton industry, which has been on a recovery path since 2015. The lowest price was in 2008 during the global financial crisis when prices fell to US 44 per pound.

Cotton industry players have already warned prevailing international lint prices would exert pressure on the margins of ginners if the Government does not chip in with a subsidy.

Edison Kalungwe, a farmer from Zhombe in Gokwe District appealed to Government to "immediately" set the price as this was putting livelihoods of farmers at stake.

Last year, nearly 400 000 cotton farmers were contracted by various companies, including private players. The Cotton Company of Zimbabwe (Cottco), which administers the Presidential Free Inputs Scheme supported about 70 percent of the farmers.

"I have a very large family. They want to eat but we have nothing since our cotton, which is our major source of livelihood, is not yet on the market," said Mr Kalungwe.

House of Assembly member of Gokwe -- Kubuyuni Leonard Chikomba, said many farmers in his constituency were now "desperate" and this has been worsened by the lockdown.

"The worrying thing now is that the crop is not yet priced yet some other crops like maize and tobacco are already being sold," said Mr Chikomba. "Government should understand the desperation of cotton farmers especially in this lockdown period."

Another farmer from Sanyati said: "My life is dependent on cotton. This year I am expecting more than 60 bales. I have harvested 24 bales already. These bales are at home.

"I will deliver my cotton to buying points only if the price is announced. The delay is actually putting our livelihood at risk. Three years ago, I lost all my cotton produce due to fire. The Government must set the price so that we also release our cotton."

However, some farmers have already delivered their thousands of bales at buying points.

"I cannot keep my cotton home because it can be destroyed by fire. I have taken my bales to buying points and we are waiting for the price so that we can be paid," Private Muzore, a farmer from Gokwe-Nembudziya said.

"Also, by delaying to buy cotton, the Government is brewing conflict between farmers and contractors.

"This is because some contractors will take advantage to lure farmers into side marketing."

Meanwhile, farmers in Gokwe and Sanyati, mostly contracted by Cottco said the yields were likely to be much higher than last season despite uneven distribution of rainfall.


Source: allafrica.com
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