Tuesday, June 11, 2013

Zimbabwe Farmers Create Cotton Shortage

Farmers create cotton shortage

Sunday, 09 June 2013 00:00
Faith Mhandu
Zimbabwe Sunday Mail

A significant number of contracted cotton growers diverted inputs to the production of other lucrative crops during the summer farming season in a move that has resulted in shortages of the “white gold” on the market.

It emerged last week that the concerned growers opted for mainly maize and tobacco after price negotiations kicked off late.

Merchants are now jostling for the available crop with some offering high prices.

Zimbabwe Commercial Farmers’ Union president Mr Wonder Chabikwa confirmed receiving the reports. He said the situation was a direct result of the cotton price-negotiating committee’s failure to come up with a pre-planting season price.

“The cotton price-negotiating team had promised to come up with a pre-planting price, but failed to agree until the marketing season began,” he said.

“Initially, most farmers signed contracts anticipating a pre-planting price. However, when some farmers noticed the price was not being announced, they decided not to grow the white gold.

“Those who returned the inputs did well.

“Some actually diverted all the inputs and the situation is very bad since contractors are expecting their money.”

Cotton Company marketing and public relations manager Ms Veronica Kadandara said her firm has since opened investigations.

Cottco is one of the major contractors.

“We would like to thank you for highlighting this issue which we are not aware of.

“However, investigations are now underway and we will advise you of the outcome in due course,” said Ms Kadandara, responding to questions from The Sunday Mail.

Reliable industry officials last week revealed that many farmers in Hurungwe, Guruve and Gokwe returned seed to contractors and diverted the fertilizer.

“There is a lot of competition (among merchants) this marketing season because some farmers who had acquired inputs under the contract system did not grow the crop but diverted the inputs,” said an official.

“Some farmers were honest enough to return the seed. However, the majority diverted the fertilizer to tobacco, which seems to be more lucrative, while others opted for maize. The situation is bad. Most merchants now fear they will be unable to recover what they invested.

“There are reports that some merchants are offering prices higher than what was agreed. There are also widespread reports of non-contractors buying the crop at a higher price,” said the official.

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