The Cotton Company

Cotton companies shortchanging farmers

By various stakeholders in the industry.

Cotton farmers in Zimbabwe have been in protracted wrangles with merchants over low cotton prices for several years and production of the crop had been compromised.

In negotiations over prices for this season, farmers and ginners agreed to a minimum grade price of $0,85 per kg for grade D,$0,89 per kg for grade C,$0,96 per kg for grade B and $1,05 per kg for grade A.

However, an investigation by The Business Diary revealed that most of the cotton companies are violating the agreement and buying the crop at the lowest grade D price across the board.

Some of the stakeholders to the agreement include farmers associations, the Agricultural Marketing Authority (AMA), the Cotton Growers Association (CGA), the Cotton Marketing Technical Committee (CMTC) and cotton companies – Cottco, Grafax, Alliance, Olam, Sino-Zim Cotton Company and Cargill.

According to the Secretary for the Federal Cotton Producers Association (FCPA), Naison Mutsananguro, most of the cotton companies are violating the agreement and buying the crop at the lowest price of $0, 85 when they are supposed to buy by grades.

“We have heard that there are also companies which are proposing to lower the price to $0, 60 but we do not know where they are getting this from. This is a violation of our agreement which is disadvantaging the poor farmer,” Mutsananguro says.

He revealed that the only company that is complying with the agreement is the Chinese company, Sino-Zim Cotton Company (Pvt) Ltd.

Mutsananguro called on cotton companies in the country to comply with the signed agreement so as not to disadvantage the poor farmer.

A cotton farmer from Sanyati, Isaac Musindo, said local cotton companies were treating farmers unfairly by not complying with agreed positions.

“The companies are making huge profits at our expense. They are treating poor farmers unfairly and they should stick to what they would have agreed to,” he complained.

When contacted for comment Berian Mukwende, the Vice President of the Zimbabwe Famers Union (ZFU), who is also in the Cotton Marketing Technical Committee referred inquiries to the CEO of the AMA who was not reachable.

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