Treasury disburses ZW$500 million for cotton farmers

By John Nhandara

COTTON farmers have started receiving their outstanding dues from last year’s deliveries following the release of ZW$500 million by treasury.

The Cotton company of Zimbabwe, COTTCO has started paying farmers their outstanding dues for the 2021 cropping season following treasury’s disbursement of ZW$500 million.

COTTCO managing director Pius Manamike confirmed to the ZBC News that they still owe farmers ZW$1.5 billion for the 2021 season.

He said Treasury has commited to disburse ZW$500 million every week to clear the arrears.

“We have started paying the farmers their subsidies for the 2021 marketing season. As we speak, we owe the farmers ZW$1,5 billion. We got ZW$500 million from Treasury.”

Meanwhile, Government recently approved a dual payment system for cotton farmers which will see them receive payment of their crop in United States dollars as well as Zimbabwe dollars.

“This payment modality means farmers will be paid US$30 for a bale of up to 250kgs,” Agricultural Marketing Authority CEO Clever Isaya said.

The government has widely adopted climate-proofing agricultural practices for cotton production in the 2021/2022 cropping season to increase production levels.