The Sunday News
Dumisani Nsingo, Farming Reporter
GOVERNMENT will distribute free cotton inputs to cotton farmers for the next three seasons as it bids to improve production of the crop in the country.
Announcing the 2016 National Budget last Thursday, Finance and Economic Development Minister Patrick Chinamasa said Government recognises the importance of reviving cotton farming, given its significant agro-linkages with the textile industry, and involvement of over 300 000 smallholder farmers.
Cotton production, at its peak, was the major source of incomes and livelihood for rural communities around the Gokwe, Sanyati, Rushinga and Checheche areas, also accounting for close to a fifth of agricultural exports.
“The numerous challenges facing the sector resulted in cotton output declining from peak levels of 353 000 metric tonnes in 2000/2001 to 136 000 tonnes during the last season. In the 2015 cotton marketing season, the crop size further declined to 102 000 tonnes,” said Minister Chinamasa.
He said other factors undermining cotton production included decline in international cotton prices, also against the background of competition from such substitutes as synthetic fibres.
“The cotton output decline is notwithstanding the installed ginnery capacity of 427 000 tonnes of seed cotton,” said Minister Chinamasa.
The decline in cotton production has also left Cottco, a major player in the industry with about 35 percent market share, on the verge of collapse at a time when a number of other private players have exited the cotton market.
“Inaction on the part of Government can only lead to total collapse of cotton production, with dire consequences across the textile industries’ related value chain. In order to reverse decline in cotton farming, Government is championing the resuscitation of cotton production through a restructured Cottco,” said Minister Chinamasa.
He said Government has unveiled a cotton inputs support scheme valued at $25,8 million, targeting to put 250 000 hectares under cotton production for the forthcoming season.
“Over and above the restructuring of Cottco, Government will also be giving free cotton inputs to cotton farmers for the next three seasons in order to encourage cotton production,” Minister Chinamasa said.
The Minister said as part of reviving the cotton industry Government was looking to take over Cottco’s $52,7 million debt and converting it into equity, embark on cost restructuring, resourcing the Cotton Input Financing Scheme in support of the 2015/16 season, registration of farmers, marketing of cotton through designated buying points as well as enhancing productivity.
“The Cotton Input Financing Scheme involves provision of inputs to growers on credit, covering seed, fertilisers, chemicals and cash advances for weeding, harvesting and packaging requirements,” he said.
Minister Chinamasa also said there was need to re-introduce a Stop Order System to ensure efficient management of the Input Programme for the sustenance of long term farming.
“This arrangement involves banks and other third parties with skills, as well as systems, to disburse and manage debt and collateral from farmers. Furthermore, companies or merchants that do not contribute to the input supply scheme will not be allowed to participate in the buying back of such cotton,” he said.
