The 2023/24 cotton marketing season was launched last week with the announcement of this year’s minimum seed cotton prices. The Agricultural Marketing Authority (AMA), responsible for regulating the production and marketing of all agricultural products in Zimbabwe except for tobacco, praised farmers for their resilience despite the ongoing drought caused by the El Niño effect. The launch of the marketing season brings hope to farmers as they showcase and sell their cotton produce. Cotton is a vital component of the agricultural sector and is commonly referred to as “white gold” due to its foreign currency generation capacity. Due to the El Niño-induced drought that affected the country this season, yields are expected to be lower than usual.
The minimum seed cotton prices are as follows: Grade A – US$0.43/kg, Grade B – US$0.39/kg, Grade C – US$0.36/kg, and Grade D – US$0.32/kg. Compared to last season, the prices are fair, ensuring farmers a return on their investment. The 2023/24 season will run from 6 June 2024 to 6 July 2024. To ensure market access, 647 common buying points have been established nationwide. Buyers are expected to use these designated points to do business with farmers. Contractors have been directed to provide payment channels close to the buying points and deliver statements of grades to farmers by 30 November 2024.
Payments will be split, with 75 percent in foreign currency and the remaining 25 percent in local currency. The introduction of the 75 percent US dollar retention on cotton sales has motivated farmers to increase the number of hectares under cultivation. To protect farmers from unscrupulous contractors, no bale will be moved from the buying point until the farmer receives full payment. Merchants with outstanding debts from last year have been barred from buying seed cotton until they clear their debts. The pricing structure of seed cotton is competitive, and the payment split is fair, enabling farmers to cover their expenses and make a profit.
The government has supported the sector through the Presidential Cotton Input Scheme, providing training and workshops to equip farmers with necessary skills. The scheme is also working to establish oil expressing and stockfeed manufacturing plants in farming communities to create jobs and curb rural-urban migration. A seamless cotton marketing season is anticipated as AMA collaborates closely with contractors and growers.
Positive Eye News
