The Cotton Company of Zimbabwe (Cottco) has assured farmers that all seed cotton housed at common buying points (CBPs) will be moved to ginneries by mid-October while outstanding 2024 payments will also be cleared.
This follows the outcry by farmers alleging that some of the 2024 seed cotton was still at some CBPs with the local currency component (US$0, 08 equivalent) still to come.
Cotton Producers and Marketers Association (CPMA) chairman, Mr Stewart Mubonderi said the seed cotton in some CBPs was damaged by last week's rains.
"Cottco has not yet picked seed cotton in some CBPs in areas such as Mutoko, Chiredzi and Binga among others and the cotton was damaged by rains that fell last week. Farmers have also not been paid their local currency component for the crop plus the grade-based differentials," he explained.
Cottco chief executive officer, Mr Rockie Mutenha yesterday promised to have all the seed cotton moved to ginneries from the CBPs for ginning.
"We have moved 76 percent of all seed cotton from all our six business units (BUs) to ginneries and we are making frantic efforts to ensure the outstanding lot is moved by mid-October.
"We have paid between 45 and 50 percent of the local currency (ZiG) amount owed to farmers," he said.
Mr Mutenha revealed that they had a facility with a local bank to pay the full amount but the bank was facing liquidity challenges but has promised to disburse the funds soon for immediate payment of farmers.
The Cottco seed cotton stock movement report dated September 26 shows that all the six business units had taken a total intake of 9 973 909 kilogrammes of cotton but had only moved 7 611 788kgs with a balance of 2 362 121kgs remaining.
The Sanyati business unit has the most outstanding seed cotton of 910 302kg followed by Chiredzi at 762 437kg, Gokwe at 283 936kg and Chinhoyi at 172 870kg. Muzarabani is fifth on 159 955kg while Kadoma comes last at 72 621kg.
The 2023/24 agriculture season was plagued by the El Nino-induced drought that caused production to plummet 85 percent from 90 084 tonnes in 2022/23 production season to 13 545 tonnes this year.
Prospects of the industry's revival from the setback are very high this season following projections of normal to above normal rains.
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Farmers are optimistic of increased productivity and production this season if they get inputs early to do dry planting by October 15 for high yields. They also want payments for the 2023 marketing season's crop together with the grade-based differentials to be fully settled.
Cottco is targeting to finance 180 000 hectares this season. A grower must have two plots of 0, 25ha each to access inputs by October.
The Government Pfumvudza/Intwasa cotton will be funded to the tune of US$127 656 000 and over ZiG2 billion in the 2024/25 season. At total of 270 000 hectares are targeted for seed cotton this season.
