May 3, 2012

Zimbabwe mulls the season's cotton price

Cotton price talks have started in Zimbabwe after farmers said they were unhappy with the ginners' proposals to pay US$0.25/kg of lint this season, saying the move will destroy the whole sector as they will not be able to go back to till the land.

The farmers are said to have walked out of a meeting with ginners last Thursday (Apr 26) over the offer which is almost a quarter of last season's Last year, the price of cotton ranged between US$0.85 and US$1,05 per kilogramme.

Cotton Growers and Marketers Association Chairman, Morris Mukwe said the 25% offer by ginners was an insult to farmers who require at least US$0.76 per kilogramme.

"We refused the offer, they are actually provoking us. The selling season has already stated and ginners have been dragging their feet over the past three weeks. It is actually affecting farmers, there is drought in the lowveld and in Gokwe, farmers are actually batter trading their livestock," Mukwe said.

Some analysts said the cotton sector's low offers for lint have been influenced by a slump in international lint prices with a kilogramme fetching less than US$1 dollar per pound, down from US$2.45 a year ago.

Farmers and ginners are supposed to agree on a seasonal price for cotton lint, which will then be approved by AMA.