The Minister of Lands, Agriculture, Fisheries, Water and Rural Development Anxious Masuka said that the Government does not set prices of cotton between growers and contractors.
Masuka said that as for pricing and payment of farmers whose inputs are funded by the Government, a system has been put in place to ensure that both parties benefit.
He was responding to concerns raised by MPs during a Question and Answer session in the National Assembly. Said Masuka:
The Government does not set prices or conditions fon how to pay. As a Government, we receive from the contractors, the cost of growing cotton in a specific area, like a Pfumvudza plot.
As for the farmers we give inputs to, that is when we state the price that we expect to buy, but the other private contractors agree on the prices they are going to pay.
Government does not go into contracts with farmers. Farmers get into contracts with the private players.
Masuka said that this year, eight contractors have engaged and entered into agreements with cotton farmers across the country. He said:
I said we had a meeting with eight contractors or companies that go out there in the rural areas.
Those eight companies will be interacting with the farmers out there in the rural areas that we represent. So, we expect the country to grow a lot of cotton.
He said that cotton farmers whose inputs are funded by the Government will get a fair return on their hard work. Said Masuka:
Government is interested in the pricing of cotton so that there is a fair return for the farmers’ efforts.
Last year we introduced a grid-differentiated pricing system that is sensitive to the hard work that farmers had put in and we started at 40c a kilogramme which is comparable to other jurisdictions in the region.
Meanwhile, the Government recently summoned the Cotton Company of Zimbabwe (COTTCO) officials to explain why the company is delaying paying the US$6.8 million the company owes cotton farmers.
Last month, COTTCO chief executive officer, Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments before the onset of the 2022/23 summer cropping season.
Mutembwa COTTCO had paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers were also cleared.
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