Cotton companies pay farmers top-ups

Business Reporter
Cotton companies are offering farmers top-up payments for higher-grade cotton delivered last season as input distribution ramps up.
Last year’s El Niño-induced drought severely impacted crop production, including cotton, which plummeted to a record low of 13 000 tonnes.
However, hopes are high for the upcoming season, with the anticipated La Niña weather pattern promising better rainfall.
Cotton is a major agricultural export commodity that benefits various sectors, including the textile industry, stockfeed, and edible oil production.
At its peak, Zimbabwe produced 351 000 tonnes in the 2010/11 season.
The Cotton Ginners Association (CGA), representing private merchants and responsible for approximately 25 percent of cotton production, has confirmed that farmers are receiving top-ups for cotton graded as A, B, and C.
Farmers first receive payment for the lowest grade (D) and then subsequent top-ups based on the final grade.
The minimum seed cotton prices for the 2024 marketing season ranged from US43c per kg for grade A, US39c grade B, US36c grade C and US32c grade D.
“We are pleased with the progress made in input distribution,” CGA said in a statement. “We have already provided a portion of the inputs to farmers and are well-prepared for the season. This, coupled with the top-ups for grade differentials, demonstrates our commitment to supporting farmers.”
Cotton is a vital source of livelihood for thousands of rural families, particularly those living in low-rainfall regions.
This resilient crop can thrive even in arid conditions.
The Government’s Presidential Inputs Scheme supports approximately 85 percent of cotton production.
However, concerns have arisen regarding potential abuse of the scheme by both farmers and the Cotton Company of Zimbabwe, which administers it.
Calls for increased accountability have grown louder as observers highlight vulnerabilities in the system.
Negotiations for cotton producer prices for 2025 are currently underway, with farmers proposing a minimum price of US34c per kg.
Key players in the cotton industry have urged stakeholders to adopt a more realistic approach to pricing the commodity, arguing that setting excessively high prices that merchants find difficult to pay has led to significant delays in payments to farmers.
Over the past few seasons, farmers have faced the frustrating consequences of delayed payments as merchants struggle to pay.
Industry experts believe that these challenges have been a major factor driving some farmers away from cotton production.
To revitalise the sector, they advocate for a pricing mechanism that is both fair to farmers and sustainable for the industry as a whole.
“Farmers have endured frustrations over payments for a long time. They are promised a good price, but that money is never paid,” said an official with a private cotton company.
“What the farmers need is to be told a price that is eventually paid, rather than telling them a price that is not paid.
“That is the biggest problem driving farmers away from production.”
Farmers have expressed frustration over the persistent delays and uncertainties in payment, despite significant effort in the cotton crop.
Ms Jenifar Marongwe, a farmer from Sanyati expressed frustration with the delays and uncertainties in payment.
She emphasised the need for a system that ensures farmers receive fair and timely compensation for their efforts. She warned that if the situation persists, many farmers may be forced to abandon cotton production.
“The constant delays and uncertainty in payment are a major challenge for farmers like me,’ said Ms Marongwe. “We work tirelessly all season, only to face the anxiety of not knowing when, or if, we will receive fair compensation for our hard work. If this continues, it will be difficult to sustain our livelihoods and the future of farming in this region.”
While drought is often cited as the primary cause of the output decline this year, some industry players attribute it to low farmer participation.
They argue that, despite some farmers receiving free inputs under the State-sponsored programme, many sold or diverted these resources to other crops like maize.
“Our argument is based on the fact that crops like tobacco, which require less water, performed better than cotton, which is more drought-resistant,” said Albert Ngorora, an agronomist with a local non-governmental organisation promoting sustainable agriculture initiatives.