The Agricultural Marketing Authority (AMA) is calling for the creation of a price stabilisation fund to shield cotton farmers from fluctuations in international market prices, as the 2024/25 seed cotton marketing season kicks off on 1 June.
Speaking at the official launch of the season on Monday, 26 May, AMA acting chief executive officer Jonathan Mukuruba stressed the need to protect local cotton farmers from the impact of global price volatility. He said:
As Zimbabwe, we are price takers on the international market and we bear the burden of low international prices this year.
Given the vagaries in international lint prices, as an Authority, we therefore advocate for the establishment of a price stabilisation fund to protect our farmers from such price volatilities.
In response to falling international lint prices and to support farmers, the Agricultural Marketing Authority (AMA) has announced that seed cotton will be purchased entirely in foreign currency (US dollars) to preserve the time value of money.
AMA has also directed all cotton contractors that no bale of seed cotton may leave a Common Buying Point (CBP) unless it has been fully paid for at the minimum Grade D price of US$0.30 per kilogramme. Said Mukuruba:
The season will run for one month, from June 1 to July 15, 2025 and 697 CBPs have been established countrywide, comprising 221 permanent and 476 mobile points.
Buying is strictly at AMA, designated buying points using the AMA database and all contractors are to deploy appropriate payment channels within reach of the farmers from their nearest buying point.
He added that merchants will only be permitted to purchase seed cotton once they have fully settled payments for last season’s deliveries, including all grade differential prices. Said Mukuruba:
The minimum seed cotton prices for the season, which shall be paid in US$ are as follows: Grade A – US$0,41 per kg, Grade B – US$0,37 per kg, Grade C – US$0,34/kg and Grade D–US$0,30/kg.
AMA has registered six seed cotton contractors for the season, and buyers’ licences will only be issued to those who meet all required conditions.
To curb side marketing, AMA has set up a verification database to track seed cotton deliveries. The system will manage woolpack distribution through contractors, monitor intake and dispatch reports, and use CBP registers.
Additional measures include random inspections, enforcing penalties, and naming and shaming violators.
More: The Herald
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