Cottco debt to farmers cleared
Harare (New Ziana) – The Cotton Company of Zimbabwe (Cottco) will now clear outstanding payments to farmers following the release of the final tranche of $750 million by treasury, an official has said.
Cottco owed farmers $2.5 billion for cotton that was delivered last season.
Cottco managing director Pious Manamike told New Ziana that farmers had started receiving their dues.
“We received the final tranche of $750 million that government owed the farmers. We are quite happy and excited about the development. This means that the entire $2.5 billion that government had committed to pay as a support price to farmers has been cleared for the 2021 marketing season.
“So all the farmers are happy,” he said.
At least 311 955 hectares of land were put under cotton this cropping season, largely as a result of government support to farmers through provision of agricultural inputs.
The government introduced a number of farmer support programmes such as the Presidential Input Scheme and Pfumvudza/Intwasa through which farmers are given seed, fertilisers and chemicals for free, to boost production.