Cotton farmers earn over US$3 million

Zimbabwean cotton farmers have sold more than US$3 million worth of seed cotton to the Cotton Company of Zimbabwe (Cottco) so far this season, with the state-run firm confirming it is paying growers entirely in foreign currency.

Cottco acting chief executive officer Rockie Mutenha said the payments are being made at the Grade D price of US$0.30 per kilogramme, a rate slightly lower than last year's price of US$0.32.

"We have bought over US$3 million worth of seed cotton across the country at the Grade D price of US$0.30 per kilogramme," Mutenha said. "As a result of the US$0.02 drop from last year's rate, we are paying our growers 100 percent in foreign currency."

Initially, this season's payment structure stipulated that 70 percent of farmer earnings would be paid in hard currency, with the remaining 30 percent in local currency. However, both Cottco and other merchants successfully petitioned the Government for full foreign currency payment, citing the fall in international cotton prices.

The cotton industry remains a key pillar of Zimbabwe's agricultural economy, sustaining the livelihoods of an estimated 2 million people. It supports not only farmers but also a wide network of downstream industries, including oil expressing, spinning, weaving, knitting, and stockfeed manufacturing.

At least 63,000 tonnes of cotton are expected to be delivered this season  -  a remarkable increase from last year's figure of 13,000 tonnes. The jump is attributed to favourable weather, improved input supply under government schemes, and renewed grower confidence in the market.

As the marketing season progresses, industry players say timely and fair payments in hard currency are critical to maintaining momentum and encouraging further participation in cotton production.