THE Cotton Company of Zimbabwe has come up with a fund to cushion growers who deliver their cotton for safekeeping as the government is finalizing the producer price for the cash crop.
A snap survey in some cotton green belts of Karoi, Hurungwe, Muzarabani and Chiweshe shows that farmers have started delivering the white gold to designated selling points countrywide.
The farmers expressed hope that the producer price for the white gold will be announced soon.
“Yes we have started delivering but the issue of producer price remains a concern to farmers,” says Chief Chundu.
“We have baled our cotton ready for delivery but we are afraid that it can be destroyed by fire as we don’t have a safe place to keep it,” says one farmer in Gweshe Chiweshe.”
However, the Cotton Company of Zimbabwe Acting Chief Executive Officer, Pious Manamike urged farmers to deliver their cotton.
He said his Organisation has put in place a fund to cushion farmers while the government finalises the producer price.
“We have made an arrangement to assist our farmers, we understand the government is finalising the producer price anytime soon. So we encourage our farmers to deliver their crop for safekeeping and those with challenges we are paying cushioning funds to assist them in the face of COVID 19,” says Manamike’.
The cotton company of Zimbabwe has sponsored about 70 percent of Cotton this season under the Presidential Free Inputs Scheme. Government has however assured farmers that the new cotton producer price will be announced as consultations over the issue await cabinet approval.
Cotton is a source of livelihood for over 400 thousand families in rural areas. Dubbed the white gold, the cash crop is also one of the country’s major foreign currency earners. The Government has hinted that it is considering a subsidy on the producer price after world prices plunged due to coronavirus.
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.
