Govt sets 2020/21 season cotton floor price
Harare, (New Ziana) – The government on Tuesday set the cotton producer price for the 2020/21 season at ZW$43.94 per kg, a cabinet minister said on Tuesday.
Harvesting of the cotton crop, which at one time was the country’s most exported crop, is currently underway.
Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said the price would allow farmers to make a 15 percent profit.
“Cabinet approved a cotton flour producer price of $43.94 per kg for the 2020/21 cotton marketing season which gives the farmers 15 percent return and ensure viability and competitiveness of the cotton industry,” she told a post cabinet media briefing.
Mutsvangwa said merchants would partly pay the farmers in foreign currency and the rest in local currency.
“The $43.93 will be paid out in the following manner, US$10 per bale of cotton delivered and 38 percent of the value of a 200kg bale will be paid in cash (local currency)and the balance will be transferred electronically to farmers mobile money wallet accounts,” she said.
Most of the cotton crop in the country is grown by rural farmers who get access to input from government for free.
“The price and input provision in cotton provision is part of government’s social protection and provision of safety nets programme to alleviate the plight of marginalised rural farmers. All inputs for cotton producers are free,” she said.