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The Second Republic has been doing its part eliminating cotton debt to its farmers as it is. set for a record boom and has directed The Cotton Company of Zimbabwe (Cottco) to open all six of its ginneries across the country to address the shortage of wool packs bedevilling the cotton industry.
For the 2021 season, Cottco will pay in three tranches; the first based on grades and that cotton attracts $56 per kg and the farmer is immediately paid $34. The second payment would be $22 per kg and the third payment only applies to farmers that have produced a quality crop of grade A or B which is $85,” he added.
Farmers that are owed by the government, Minister Masuka said, will be paid in four tranches and farmers that were fully paid last year will be paid in three tranches adding the government was committed to ensuring that cotton plays a critical role in the transformation of all households towards 2030.
Zimbabwe’s cotton production for the current 2020/21 season will likely surpass the initial projection of 150 000 tonnes, the highest yield in nearly five years, on increased inputs subsidies and good rains.
Last week, Cottco projected its own intake from farmers this year to increase by 82 percent to 150 000 tonnes from 83 000 tonnes a year ago.
Its intake generally reflects the national output as it controls 90 percent of the market.
Four more toll ginning facilities in various parts of the country are also expected to be opened to receive cotton from farmers across the country in time.
The farmers receive the packaging material from Cottco for safe storage and operationalisation of the ginneries and it allows the company to empty loaded woolpacks for reuse by farmers.
Zimbabwe saw a 90-percent rise in cotton production this season, driven by success of the Presidential Cotton Inputs Scheme, but the global Covid – 19 pandemic and civil unrest in South Africa have affected the delivery of over 350 000 woolpacks procured from India to address the shortage of packaging material.
Lands, Agriculture, Water, Fisheries and Rural Resettlement Minister, Dr Anxious Masuka, said the resuscitation of all the six ginneries and opening of an additional four toll ginning points would commence soon.
“The woolpacks are a challenge because they are only manufactured in India and Bangladesh and we are unable to improvise locally. We have purchased an additional 350 000 woolpacks from India but unfortunately, we are unable to bring them to Zimbabwe as soon as possible because of the interruptions that have taken place in South Africa.
“The plan ‘B’ that we have as a nation is to activate all the six Cottco ginneries and to be able to engage four more toll-ginning points so that we can release between 6 000 and 7 000 woolpacks daily to be able to recycle,” said Minister Masuka.
“The government is going to come up with a subsidy and although last year we gave a subsidy, there were delays in payment. I shall be engaging the farmers to hear from them if they have started receiving payments for last year’s subsidy as promised by the President.
Cottco company administers the Presidential Inputs Scheme, which started in 2015 and was meant to expand cotton production and also assist rural and vulnerable families.
Under the scheme, farmers get free inputs such as seed, fertilisers and agro chemicals.
The scheme has seen cotton production growing from 28 000 tonnes in 2015, the lowest output in almost two decades. At its peak in 2011, Zimbabwe produced 351 000 tonnes.
“We expect output to surpass 150 000 tonnes this year; we will probably hit 170 000 tonnes with the other volumes coming from private players,” senior industry officials said on condition of anonymity.
As at June 30, 2021 Cottco had bought about 57 000 tonnes, 38 percent of its intake target.
This season, the Government will pay nearly $3,5 billion in subsidies to cotton farmers.
Cottco said it was looking to roll out the high-yielding varieties on a larger scale next season to improve volumes and viability. The hybrid seed has already been tested and output was more than double the yield per hectare compared with open pollinated varieties.
On outstanding payments to farmers on last year’s deliveries, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa told a post Cabinet briefing last week that outstanding payments were being made.
A total of $220 million and US$659 000 had already been paid.
The balances arose as a support price to farmers to encourage increased cotton production.
At the beginning of the selling season, farmers were owed about $1,5 billion. Government owns 37 percent in Cottco and intends to raise its shareholding to 51 percent.
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