Maravi

(HERALD) Cotton prices: Govt ropes in Chinese firms

Cotton prices: Govt ropes in Chinese firms
Agriculture Reporter

Government has roped in some Chinese companies to buy cotton this season as it seeks to increase competition in an industry that has been affected by poor prices. This follows an impasse between cotton growers and traditional buyers over producer prices.

Cotton farmers were complaining over the US30 cents per kilogramme that was being offered by buyers. They argued the price is not viable.

This prompted the Government to intervene and announce the price of US42 cents per kilogramme, which some farmers still said was low considering the high production costs.

In an interview yesterday, Agriculture Minister Joseph Made said an agreement had been concluded for Chinese companies to participate in the purchasing of cotton.

"China already has some companies supporting tobacco and we are also looking at assistance that should go towards cotton farmers. The Chinese are major players in the cotton sector as they consume eight million kilogrammes per year," he said.

Minister Made said some contractors this year did not support cotton growing as they supplied inputs for low hectarage.

"The contracted crop should be sold to the contractor but the farmer is free to sell the remainder to willing buyers," he said.

Chinese companies are expected to support farmers in terms of inputs.

"Zimbabwe’s challenge has been delivery of crop inputs, cotton demands in terms of seed and fertilizers and chemicals for the production of high quality crop.

"We hope the Chinese will be able to support farmers and venture on agro-processing so that we will be able to benefit from raw cotton," he said.

On the rejection of the US42 cents per kilogramme price by farmers, Minister Made said they were justified because they were looking at viability.

"Government is looking into the matter with the seriousness it deserves. Cotton is their only crop hence they need to realise a reasonable profit to allow them to get back on the land next season," he said.

Minister Made said although it was important to consider international prices, it was also equally important that farmers aired their views on the producer prices.

He said farmers should, however, speak with one voice through their unions or representatives.

"We should not leave the farmer to die because we can easily import everything. We should defend farmers, we should defend land reform," Minister Made said.

He said his ministry would continue to lobby the Ministry of Finance for increased assistance to cotton farmers.

Producer price disputes have riddled the cotton industry since the beginning of the marketing season.

Merchants were offering US 31 cents per kilogramme, prices cotton growers rejected. This resulted in growers withholding their crop prompting Government intervention and set the price at US42 cents.

Farmers have however, rejected the price arguing that the crop should fetch more to cushion them against high production costs.

Minister Made yesterday morning met the Ministry of Industry and Commerce officials to discuss the way forward on the cotton issue but the outcome of the meeting could not be established.

Labels: CHINESE, COTTON

posted by MrK @ 5:37 PM