Cotton Farmers Owed $1.5 Billion From Last Year’s Deliveries
The Cotton Company of Zimbabwe (Cottco) owes farmers $1.5 billion from the crop that they delivered last season, an official has revealed.
The company’s acting managing director Pious Manamike said the payments to farmers had been a challenge due to a number of reasons. He said:
At this stage, we have not made payments amounting to $1.5 billion to farmers for the crop delivered last year.
We still have hurdles to be cleared in terms of operationalisation and raising of the funds.
Meanwhile, Lands, Agriculture, Fisheries, Water and Rural Resettlement Permanent Secretary Dr John Basera last week said the farmers will be paid their outstanding dues in full by mid-next month.
Dr. Basera said this while giving oral evidence to the Parliamentary Portfolio Committee on Lands, Agriculture, Fisheries, Water, and Rural Resettlement chaired by Gokwe Nembudziya legislator Cde Justice Mayor Wadyajena.
He said the Ministry of Finance and Economic Development, together with the Reserve Bank of Zimbabwe, was working out modalities so that money was passed to Cottco so that it pays farmers.
Last year the cotton producer price was set at $43,94 (US$1,75) per kg and the government has intervened because of Cottco’s cash flow problems.
For this year’s crop, Manamike said, the price has been pegged at US$0,35c a kg and Cottco is working with CABS and CBZ to obtain funds so that it pays farmers on delivery.
Manamike also said 98 percent of the cotton was being produced through the Presidential Input Scheme while 2 percent was being contributed through free farming.
Source | The Herald
In other news, Gweru Businessman Shoots Dead Wife’s Friend & Suspected Lover
There was horror at the Bensam Flats in Gweru in the early hours of Friday after a local businessman went berserk and shot four people.
A prominent car dealer in Gweru, Peter Dube, last night opened fire on four people, killing two and injuring two others, including his wife Nyasha Nharingo, following a domestic dispute at their residence in the central business district.
In a sad and unusual development that occurred at Bensam Flats in Gweru, a local businessman Peter Dube (35) shot and killed his lovers’ suspected boyfriend along with his girlfriend, leaving his second wife Nyasha Nharingo (31) and her sister Nyaradzo Nharingo (34) seriously injured…Learn More