Zimbabwe: Farmers Push for New Cotton Price

Source from:  The Herald (Harare) April 25, 2006 04/26/2006

COTTON farmers are pushing for a support price of $60 000 from $5 000 per kilogramme, about three times higher than what merchants are currently offering. The price will make farmers realise at least 25 percent profit. Herald Business understands that the proposal has already been taken to Government and the Reserve Bank of Zimbabwe (RBZ) through the National Cotton Council and is under consideration. Farmers say $60 000 plus the $23 000 being offered by cotton merchants would enable them to go back to the fields in the coming season. They say what they are being offered was "too little" and "insufficient" to repay their loans as well as purchase inputs for next season. "The money being offered at present is uneconomic," noted Chipinge farmer Mr Fred Gorenhamo. "At least a support price of between $40 000 and $60 000 will be ideal to cushion us from the current predicament." Agriculture Minister Dr Joseph Made yesterday confirmed that they had received the proposal but was reluctant to give more details. "It's true that we have received the proposal from farmers and discussions are in progress. "We will let you know once talks are finalised," was all he was prepared to say. Said another farmer: "Government should quickly intervene just like they did ahead of the tobacco selling season. "It's almost three weeks after our marketing season started but nothing has been done. We must be treated equally. "Farming is now a business and we are in it to make a living and earn profits." Deliveries of the white gold, according to industry players, have been disappointing. Although actual figures could not be ascertained, they say farmers were holding on to their crop in anticipation of higher prices. It is projected that 350 000 tonnes would be offered for sale this season, up from about 200 000 tonnes last year, earning the country about US$140 million in exports. Enditem