Govt to clear outstanding cotton farmers’ balances...

Govt to clear outstanding cotton farmers’ balances before marketing season starts

Oscar J Jeke

Zim Now Reporter

Government, through the Cotton Company has vowed to clear all outstanding balances to farmers by May 31, a few days before the start of this years’ cotton marketing season on June 1.

The arrears are in both US$ component and ZiG, US$2.65 million and ZiG2.8 million respectively, with the Cotton Company promising to clear the remaining balances before the commencement of the this year’s marketing season set for 1 to 30 June.

Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere confirmed the news, addressing the media at the post-Cabinet briefing in Harare yesterday, adding farmers are set to receive 75% payment in US$ and 25% in local currency.

“Cabinet advises that the 2024 cotton marketing season will be from 1 to 30 June 2024. Farmers will receive 75% of their payments in US$ and 25% in ZiG. All outstanding payments by the Cotton Company of Zimbabwe amounting to US$2.65 million and 2.8 million in ZiG will be cleared by 31 May 2024. The grade-based pricing system will be announced once on-going consultations are concluded,” minister Muswere said.

He also added that there are ongoing consultations to conclude on the grade-based pricing system, which will be announced after the consultations.

Meanwhile, the minister also took time to present on the sale of tobacco, which he said, the last update of May 8, had 116.4 million kilogrammes of tobacco sold at an average price of US$3.57 per kg, while giving notice of the Africa Regional and Annual Tobacco Conference to be hosted by Zimbabwe from 15 to 16 May.

“The Africa Regional and Annual Tobacco Conference will be held in Harare from 15 to 16 May, 2024. The topics for discussion include the following; production challenges and opportunities; sustainability of the tobacco sector; contracting models; and future prospects of the tobacco sector in Africa,” he added.

According to the minister, decentralised floors have accounted for over a quarter of tobacco sold under contract.

“Regarding tobacco, Cabinet advises that as at 8 May 2024, 116.4 million kilogrammes of tobacco were sold at an average price of US$3.57/kg, with decentralised floors accounting for 35% of the total tobacco sold under contract,” he added.