Call to adopt realistic cotton pricing gets louder

30 Oct, 2024 - 17:10 0 Views
Call to adopt realistic cotton pricing gets louder A cotton farmer

Business Writer

Key players in the cotton industry have urged stakeholders to adopt a more realistic approach to pricing the commodity, arguing that setting excessively high prices that merchants find difficult to pay has led to significant delays in payments to farmers.

Over the past few seasons, farmers have faced the frustrating consequences of delayed payments as merchants struggle to meet the Government-mandated prices.

Despite repeated Government promises of subsidies to support farmers, these have not materialised, resulting in further delays or, in some cases, complete non-payment.

Even when payments are eventually made, their value is often eroded by rampant inflation.

Industry experts believe that these challenges have been a major factor driving farmers away from cotton production.

To revitalise the sector, they advocate for a pricing mechanism that is both fair to farmers and sustainable for the industry as a whole.

Farmers contracted by the Cotton Company of Zimbabwe (Cottco), through the Government’s Presidential Free Inputs Scheme, have endured years of hardship, and sometimes receiving payments in the form of groceries.

Cottco sponsors 85 percent of cotton production, representing over 250 000 households.

With negotiations for the 2025 cotton season underway, industry experts have warned of the negative consequences of setting unrealistic prices.

“Farmers have endured frustrations over payments for a long time. They are promised a good price, but that money is never paid,” said an official with the Cotton Ginner Association, which represents the interests of private merchants responsible for about 15 percent of cotton production.

“What the farmers need is to be told a price that is eventually paid, rather than telling them a price that is not paid.

“That is the biggest problem driving farmers away from production.”

Farmers have expressed frustration over the persistent delays and uncertainties in payment, despite significant effort in the cotton crop.

“As a farmer, it is incredibly frustrating to work hard all season, only to face endless delays and uncertainties about payment. We need a system that ensures we receive fair and timely compensation for our labour.

“If this continues, it is hard to imagine many of us staying in this business” Eremenzia Sithole, a farmer in Checheche said.

This year was probably the worst known cotton season in Zimbabwe’s history, with production plummeting to around 13 000 tonnes from approximately 82 000 tonnes the previous season.

While drought is often cited as the primary cause of the decline, some industry players attribute it to low farmer participation.

They argue that, despite some farmers receiving free inputs under the State-sponsored programme, many sold or diverted these resources to other crops like maize.

“Our argument is based on the fact that crops like tobacco, which require less water, performed better than cotton, which is more drought-resistant,” said Albert Ngorora, an agronomist with a local non-governmental organisation promoting sustainable agriculture initiatives.

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