Cotton Buying Price Reduced To 30 Cents Ahead Of Marketing Season

The cotton buying price for the 2024/25 season has been set at US30 cents per kilogramme, down from last season’s US32 cents.

This follows extensive negotiations between the Government, ginners, and farmers’ organisations.

The cotton buying season is expected to begin in the first week of next month, with payments to be made at designated buying points.

Six farmers’ organisations were involved in the pricing discussions. Of these, five, including the Zimbabwe Farmers Union and the Zimbabwe National Farmers Union, agreed to the new price.

However, the Cotton Producers and Marketers Association opposed the change, insisting that the price should remain at US32 cents.

A local merchant executive told The Herald that the US30 cents per kilogramme is the minimum price, and farmers may receive additional payments depending on the grade of their cotton. The official said:

Global lint prices, along with ginning and shipping costs, were the main factors determining the prices.

It’s, however, important to note that US30c per kilogramme represents the minimum price, with farmers eligible for additional payments (differentials) determined by the grade of their cotton.

Global lint prices have dropped to around US67 cents per pound, down from about US87 cents at the same time last year.

Obert Jiri, the Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, represented the Government during the talks.

A proposal from the Cotton Company of Zimbabwe (COTTCO) to pay 70% of the money in ZiG was turned down by other stakeholders.