Govt Approves 70:30 Cotton Payment Structure

Oscar J Jeke

Zim Now Reporer

The Government has approved a 70:30 payment structure for cotton seed prices in the 2025 marketing season, with farmers set to receive payments in both United States dollars and ZiG local currency.

According to an official update on the 2024-2025 summer crops marketing and 2025 winter wheat production programme, Information, Publicity and Broadcasting Services minister Jenfan Muswere noted that seed cotton prices will be paid out at 70% in US dollars and 30% in ZiG, a move aimed at cushioning farmers against inflation and enhancing their earnings.

“The minimum seed cotton prices for the season will be paid out in a 70:30 ratio in US dollar and ZiG currencies respectively. The minimum producer prices for cotton have been set per grade as follows: Grade A: US$0.41/kg, Grade B: US$0.37/kg, Grade C: US$0.34/kg, Grade D: US$0.30/kg,” minister Muswere reported.

The 2025 cotton marketing season officially opened on June 9, with government projecting a bumper harvest of 61,000 metric tonnes more than four times last season’s 13,600 metric tonnes. To support the anticipated surge in output,authorities have set up 697 buying points, including 221 permanent stations and 476 mobile units across the country.

Strict regulatory measures have been implemented to ensure transparency and protect farmers. According to Cabinet, no cotton bales will be moved from buying points unless farmers have been fully paid. Additionally, merchants are prohibited from participating in the current season’s purchases until all dues from the previous season including grade differentials have been cleared.

“Furthermore, merchants are only permitted to purchase seed cotton once they have settled all outstanding payments for previous season's deliveries, including any grade differential prices owed to farmers,” he added.

Government attributes the expected record-breaking output to improved input support, better agronomic practices, and favourable weather conditions.

The update also showed gains across the agricultural sector. As of June 8, the tobacco industry had sold 272.7 million kilograms worth US$917.6 million, produced by approximately 135,000 farmers. This reflects a 41% increase in volumes compared to the same period in 2024, with average earnings now surpassing US$6,700 per farmer.

Meanwhile, the winter cereals programme remains on track. Wheat planting has reached 105,663 hectares against a seasonal target of 120,000 hectares, while barley planting is at 6,115 hectares (94.1% of target), and potatoes have reached 3,417 hectares out of a targeted 8,700.

The Strategic Grain Reserve currently holds 80,208 metric tonnes, with private sector maize stocks at 48,293 metric tonnes, as the Grain Marketing Board continues to receive grain and oilseed deliveries from the summer season. The government is mobilising resources to ensure timely payment for deliveries expected to range between 120,000 and 150,000 metric tonnes.