Cotton growers have criticised the government for its abrupt ban on bulk mobile money transfers, saying this will derail their operations as payments are now taking longer at a time the rate of inflation is galloping.<\/p>\n
The government, on June 26, banned mobile phone-based payments to deal with what it called ‘criminality and economic sabotage.<\/p>\n
A day later, the Reserve Bank of Zimbabwe revised the ban by suspending bulk mobile phone-based transactions and imposed limits on money transfers.<\/p>\n
Cotton farmers, however, told a meeting in Gokwe-Nembudziya organised by the parliamentary portfolio committee on agriculture chaired by the local MP Justice Mayor Wadyajena that the ban was ill-conceived as it would have a devastating impact on their operations.<\/p>\n
The farmers had no kind words for the government, saying its currency reforms had failed.<\/p>\n
They also criticised the recent ban on bulk mobile money transfers, which they said was making it difficult for buyers to pay them for their produce.<\/p>\n
Cotton farmers said the government was neglecting the sector because most ministers were into tobacco farming and did not bother themselves about what was happening in the cotton industry.<\/p>\n
“We note with concern that many ministers are involved in tobacco farming and that is why tobacco prices are quickly addressed,” said Revai Muvambi, a farmer from Nemangwe.<\/p>\n
“For most of us commoners farming cotton, we continue to suffer. Ministers do not care about our plight.”<\/p>\n
Cottco is paying $8 000 per bale of cotton and 38% of that money is paid in cash in local currency with another US$10 while the rest is paid through mobile money transfers.<\/p>\n
Farmers said the ban on Ecocash agents and limits on daily transactions had made things difficult for them as their payments were being delayed.<\/p>\n
They complained that it would now take a long time for farmers to receive their payments as Ecocash transactions were being limited to $500 a day.<\/p>\n
Edison Kalungwe, who is expecting close to<\/p>\n
$2 million for his cotton this season, said farmers would be forced to demand foreign currency for their produce.<\/p>\n
Gokwe produces 60% of the national cotton input, but farmers said they had gone for months without receiving payments after delivering their produce.<\/p>\n
“April is the start of cotton payments, but up to now, nothing has been done.<\/p>\n
“If we are paid through Ecocash, we will not be able to buy anything because of inflation and because of the daily limits of transactions,” Beauty Makai, a disgruntled farmer, said, brandishing a US dollar note saying it was the only currency they should be paid in.<\/p>\n
Wadyajena said the committee would produce a report with recommendations and assured the farmers that their concerns would be forwarded to the authorities.<\/p>\n
“Cotton farmers are integral in economic development and as your committee, I can assure you that your issues must be and will be looked into,” he said.<\/p>\n
“I understand your predicament as cotton farmers and I would also want better payment just like what is given to tobacco farmers, for example.<\/p>\n
“Back in the day, cotton farmers would buy tractors, trucks and a lot of things, but now, as you all said here, it is a crisis.<\/p>\n
“We all need to have a solution to this and make sure cotton farmers get the reward they deserve from their hard work.”<\/p>\n
Stewart Mubonderi, National Cotton Marketers Association chairman, said they hoped legislators would push for solutions to problems facing farmers, such as delays in the processing of payments.<\/p>\n
“The challenges our farmers are facing include non-payment and it’s only yesterday when farmers started receiving US$10 per bale, which I also feel must be raised,” Mubonderi said.<\/p>\n
“The price that was announced was very good but due to inflation, there is need to adjust, especially considering that we have a weekly auction, which determines the new US dollar rate.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Cotton growers have criticised the government for its abrupt ban on bulk mobile money transfers, saying this will derail their operations as payments are now taking longer at a time the rate of inflation is galloping. The government, on June 26, banned mobile phone-based payments to deal with what it called ‘criminality and economic sabotage. […]<\/p>\n","protected":false},"author":84,"featured_media":7864,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6],"tags":[474,953],"class_list":["post-25010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-gowke","tag-zimbabwe-farmers-union"],"yoast_head":"\n