Cotton farmers demand more foreign currency

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ZIMBABWEAN cotton farmers are up in arms against the government and are demanding to be paid at least 50 percent of their sales in United States dollars.
This comes as the Reserve Bank of Zimbabwe early this month increased foreign currency retention thresholds for tobacco farmers to 50 percent from the previous 30 percent.
Stewart Mubonderi, the Cotton Producers and Marketers Association (CPMA) chairperson, said farmers should be treated equally by the government.
“We are worried that cotton farmers’ foreign currency retention is still at 30 percent while tobacco’s retention percent was recently reviewed. We both (cotton and tobacco farmers) contribute to the country’s gross domestic product and should not be ignored,” he said.
“We wrote to the Reserve Bank last week, it is the second letter to them this month. We are looking forward to a response from them this week and hopefully an engagement. The gold industry was given an audience and we also expect the same.”
Cotton, which is the biggest foreign currency-earning crop after tobacco, is produced by more than 300 000 farmers and nearly 900 000 people rely on the crop in Zimbabwe.
Mubonderi said this year many farmers could be counting their losses due to the prolonged dry spell that the country has faced in the 2018-2019 rainy season, which drastically affected the crop, hence output is expected to decline this year.
Zimbabwe’s cotton output in the 2018 marketing season rose by 76 percent year-on-year to 130 000 tonnes, from 70 000 tonnes in 2017 owing to increased government support to farmers. At peak in 2013, Zimbabwe produced 352 000 tonnes.
Government’s Presidential Free Cotton Inputs Scheme has, however, helped the vulnerable marginalised farmers who have been suffering from the high cost of inputs and low producer prices.
Private companies such as Zimbabwe Cotton Consortium have also played a critical role in supporting farmers by issuing free cotton season, fertiliser and chemicals.
Nancy Zitsanza, Agriculture Marketing Authority’s acting chief executive, is on record saying there was a huge demand for Zimbabwe’s cotton, which she said was ranked third in the world.
“Zimbabwe cotton is the third best cotton in the world according to the international market ratings. Our cotton is now highly regarded in terms of quality. It is also on demand and there has been underproduction of cotton in the country,” she said.
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