By Owen Mandovha
PROSPECTS for the recovery of the country’s cotton industry are looking bright as Cottco has registered over 90 percent increase in cotton deliveries compared to 2020.
A combination of a well coordinated input distribution exercise and an improved rainfall season was a boon for this year’s cotton marketing season with deliveries expected to reach 150 000 metric tonnes this marketing season.
This translates to over a 90 percent growth in deliveries as compared to 80 000 metric tonnes delivered during the 2020 marketing season.
These results are contained in COTTCO’s first quarter trading update, which also reflects that lint prices have significantly recovered from as low as US 56 cents per pounce on the global market to around 88 us cents due to increased world demand and low world stocks.
However, Acting Company Secretary, Jacqueline Dube noted that side marketing of the crop remains a key concern and expects the promulgation of Statutory Instrument 96 of 2021 to curtail the mal-practice.
The company’s order book is full for both lint and ginned seed and is forecasting to export 76 percent of its lint.
With regard to pricing, the company has pledged to ensure that farmers attain a viable price and continue to grow cotton in the forth-coming seasons.
On another note, the company’s cost containment activities and improved operational efficiencies are expected to ensure that the company does not incur a loss of the financial year ended 31 March 2021.
These developments come following efforts by the Sifelani Jabangwe led Cottco board which was appointed to bring back the glory years to the country’s cotton and textile industry.
By Owen Mandovha