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Cotton farmers want immediate price talks
5 hrs ago | Views
Zimbabwean cotton farmers are pressing the Agriculture Marketing Authority (AMA) to urgently initiate price negotiations for the 2025 marketing season, warning that any further delay could trigger widespread side marketing as harvesting begins.
Farmers voiced concerns that continued inaction could leave them vulnerable to selling their produce to non-contracting companies due to pressing financial needs, especially with schools set to reopen in the next two weeks.
"We can't afford any more waiting. Some cotton is ready, and with schools opening soon, we desperately need these negotiations finalised now to avoid being forced into unfavourable side deals," said Steward Mubonderi, secretary general of the Cotton Producers and Marketers Association, in an interview.
He warned that delaying price talks would create desperation among farmers, pushing them toward side marketing, which undermines the formal cotton marketing system.
The price negotiation process involves the AMA, cotton merchants, and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development. The agreed outcomes from these talks are used to recommend cotton prices to the ministry, which has the final authority to set them.
Cotton is priced according to four grades, with payments structured to reward higher quality produce. However, farmers have raised concerns over cases where merchants have failed to pay the full price differential for better grades.
"We deliver quality cotton, expecting to be paid according to the agreed grading system. It's unacceptable when some merchants fail to honour their commitment and withhold the price difference for our better grades," Mubonderi added.
In the 2024 season, seed cotton prices ranged from US$0.32 to US$0.43 per kilogramme, depending on grade. Grade A cotton fetched US$0.43/kg, Grade B US$0.39/kg, Grade C US$0.36/kg, and Grade D US$0.32/kg.
Despite official government projections estimating cotton production at 60,000 tonnes this year, a sharp rise from last year's drought-hit 13,000 tonnes, stakeholders anticipate that the final yield could be double the government's forecast.
Cottco, the largest financier of cotton farming through the Presidential Input Scheme, expects to collect 60,000 tonnes from its 100,000 contracted farmers alone.
Cotton remains one of Zimbabwe's key export commodities. At its peak in the 2010/11 season, the country produced a record 352,000 tonnes.
Farmers voiced concerns that continued inaction could leave them vulnerable to selling their produce to non-contracting companies due to pressing financial needs, especially with schools set to reopen in the next two weeks.
"We can't afford any more waiting. Some cotton is ready, and with schools opening soon, we desperately need these negotiations finalised now to avoid being forced into unfavourable side deals," said Steward Mubonderi, secretary general of the Cotton Producers and Marketers Association, in an interview.
He warned that delaying price talks would create desperation among farmers, pushing them toward side marketing, which undermines the formal cotton marketing system.
The price negotiation process involves the AMA, cotton merchants, and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development. The agreed outcomes from these talks are used to recommend cotton prices to the ministry, which has the final authority to set them.
Cotton is priced according to four grades, with payments structured to reward higher quality produce. However, farmers have raised concerns over cases where merchants have failed to pay the full price differential for better grades.
"We deliver quality cotton, expecting to be paid according to the agreed grading system. It's unacceptable when some merchants fail to honour their commitment and withhold the price difference for our better grades," Mubonderi added.
In the 2024 season, seed cotton prices ranged from US$0.32 to US$0.43 per kilogramme, depending on grade. Grade A cotton fetched US$0.43/kg, Grade B US$0.39/kg, Grade C US$0.36/kg, and Grade D US$0.32/kg.
Despite official government projections estimating cotton production at 60,000 tonnes this year, a sharp rise from last year's drought-hit 13,000 tonnes, stakeholders anticipate that the final yield could be double the government's forecast.
Cottco, the largest financier of cotton farming through the Presidential Input Scheme, expects to collect 60,000 tonnes from its 100,000 contracted farmers alone.
Cotton remains one of Zimbabwe's key export commodities. At its peak in the 2010/11 season, the country produced a record 352,000 tonnes.
Source - The Herald
