The government says it will announce the cotton price in two weeks, while the Reserve Bank of Zimbabwe has announced a 10 percent export incentive for growers.
The Deputy Minister of Lands, Agriculture and Rural Resettlement, Cde Davis Marapira urged farmers not to stop delivering the white gold despite getting last year’s price, saying the price will be adjusted.
Last week, the Zimbabwe Farmers Union (ZFU) expressed concern that they might be prejudiced as growers were delivering without a substantive producer price.
“Farmers are concerned because there is no producer price, they are just getting a flat rate of $50 per bale, so the Agricultural Marketing Authority (AMA) should quickly announce the price,” said Mr Paul Zakariya, the ZFU Executive Director.
The Cotton Producers Association also raised the red flag over side marketing threats but AMA Acting Board Chairman, Mr Berean Mukwende warned that stern measures will be taken against those caught doing so.
“Yes the season has started and no unregistered buyers are allowed to purchase cotton. There are AMA officials at every depot to ensure that side marketing does not happen,” he said.
Meanwhile, cotton growers will receive a 10 percent export incentive on a monthly basis, according to the Reserve Bank of Zimbabwe.
Growers will be paid $40 cash per each bale sold.
The reserve bank said cotton shall be purchased using offshore lines of credit.