After a fortnight of trading, cotton farmers have delivered three million kilogrammes of the white gold and received payments on the spot at all common buying points (CBPs) nationwide.
Statistics released by the Agricultural and Marketing Authority (AMA) yesterday show that 2 909 297 kilogrammes of seed cotton valued at US$698 231 and ZiG3 140 202 had been purchased by five contractors.
Launching the 2024 cotton marketing season, AMA chief executive officer, Mr Clever Isaya said in line with Government monetary policy, payment to farmers shall be split as 75 percent United States (US) dollars and 25 percent local currency (ZiG) with payment being on grade D price of US$0, 32 per kilogramme.
Mr Isaya said this year's sales were very low compared to the 43 692 339 kilogrammes sold by the same date last year.
Cottco is the largest buyer accounting for 84 percent of the sales with a volume of 2 438 454 kilogrammes worth US$585 229 and ZiG2 631 989.
Alliance Ginneries is second after Cottco with seven percent after purchasing 205 089 kilogrammes valued at US$49 221 and ZiG221 367, followed by Agri Value Chain with five percent of all sales after buying 159 987 kilogrammes.
Southern Cotton is fourth after purchasing 104 167 kilogrammes worth US$25 000 and ZiG112 435, with Zimbabwe Cotton Consortium (ZCC) last on 1 600 kilogrammes valued at US$384 and ZiG1 727.
Some farmers who sold their crop to private contractors said they got all payments in United States dollars with a kilogramme fetching US$0, 32 per kilogramme. Those who delivered to Cottco say they were only paid US$0,24 per kilogramme and the local currency equivalent of US$0, 08 will be paid at a later date to be advised.
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Cottco acting chief executive officer Mr Rockie Mutenha confirmed the claims saying his organisation was only paying only the United States dollar component of US$0, 24 and had started paying the Zimbabwe dollar component on Monday.
He was addressing cotton stakeholders on the Zimbabwe Agricultural Think Tank (ZATT) - Cotton Council Discussion Forum (CCDF).
"Cottco would like to advise that it is currently paying only the US dollar component. We are also ready to pay the ZiG part but notes are not readily available from banks. Arrangements have been made with Agricultural Finance Corporation (AFC) for payment for the ZiG component to be through the mobile money platform Ecocash," he said.
He added that Cottco was also making frantic efforts to ensure farmers are paid for their outstanding 2023 seed cotton deliveries and grade-based differentials soon.
"We don't want to fail our most important stakeholder, farmers, because our existence lies with them and we cannot afford to continue frustrating them," he added.
