COTTCO Says It Paid Out US$21 Million To Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO), says it has paid the US$21 million it owed cotton farmers, with U$323 642 remaining uncollected despite several notices to farmers to do so.

In an update, COTTCO urged farmers to visit the designated collection points to collect the payments. It said:

This delay in voucher redemption is a cause for concern, particularly in this drought year whereby farmers require financial resources to ensure food security.

Farmers are encouraged to visit business units or designated collection points promptly to access their hard-earned payments.

COTTCO remains committed to ensuring transparency and efficiency in the payment process and encourages farmers to actively engage with the company to access their rightful payments without delay.

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In an interview with NewsDay, Cotton Producers and Marketers Association of Zimbabwe chairman Stewart Mubonderi cotton farmers are still owed US$2,8 million by COTTCO. He said:

COTTCO had paid US$21 million and the outstanding is US$2,8 million which is worrisome as we are facing drought.

The cotton farmers were initially owed US$23,6 million by COTTCO. The company had been struggling to settle the payments due to a lack of funding. Added Mubonderi:

The company has to show seriousness as farmers are facing hardships this year, and giving those vouchers will be easier than what is happening.

On the issue of ZiG which they have not paid, that money needs to be paid to farmers. It will be unfair if that money is not paid on time to farmers.

Cotton is one of Zimbabwe’s major agricultural exports but yields have declined over the years due to several factors.

According to the Agricultural Marketing Authority (AMA), the country’s cotton production increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.

More: Pindula News