Farmers earn US$1.74m as 2026 seed cotton intake surges

Farmers earn US$1.74m as 2026 seed cotton intake surges

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Farmers have earned a combined US$1.74 million from seed cotton sales so far this season, as cotton marketing gathers pace and deliveries rise sharply compared with last year.

According to the Agricultural Marketing Authority (AMA) weekly report dated June 19, total seed cotton intake climbed to 5 079 907 kilogrammes by June 18, up from 310 625kg recorded over the same period last year, representing a 1 535 percent increase.

The AMA report states that growers have received US$1.2 million and ZiG14.3 million from sales to date.

Minimum prices for the 2026 cotton marketing season were set following negotiations between farmers and contractors, AMA chief executive Ms Alice Mapfiza said when she officially launched the season in May. Prices were set at US$0.43 per kilogramme for grade A, US$0.41 for grade B, US$0.38 for grade C and US$0.35 for grade D.

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Under the Reserve Bank of Zimbabwe (RBZ) guidelines, 70 percent of payments are to be made in United States dollars, with the balance paid in local currency, across the 173 permanent and 398 mobile common buying points (CBPs) established countrywide.

AMA said payments should be made instantly upon delivery, and not later than 48 hours, in line with RBZ payment rules. “No bale shall be removed from the CBP unless it has been paid for in terms of the minimum price,” AMA said. It added that contractors are expected to deliver individualised statements of grades and intake to farmers by November 30.

Contract buying figures provided in the report show that Cottco has purchased 62 percent of the crop sold so far, amounting to 3 169 424kg. Alliance Ginneries has bought 19 percent (975 000kg), while Southern Cotton has purchased 11 percent (567 172kg). Agri Value Chain bought six percent (295 336kg) and Cangrow one percent (72 975kg).

Cotton Producers and Marketers Association (CPMA) chair Mr Stewart Mubonderi said members were pleased that Cottco has provided plastic bags for cotton picking and that payments were being made in both foreign currency and ZiG through Ecocash.

Mr Smart Kambanje of Nembudziya in Gokwe North District, described as best cotton farmer for the 2021/22 season, said his wife sold 16 bales and received payment in the currencies.

However, some farmers reported challenges. Mr Watson Madziyadondo from Mbezvo Village in Hurungwe said he had delivered four bales to a local CBP but the crop was yet to be bought. An A1 farmer from Masvingo, Mr Kurauone Chimbwero, said contractors were buying at the Dawlish CBP, but that many merchants were not paying the full amounts at once.

Cotton Ginners Association chair Mr Jonas Chindanya said members were actively buying the crop and were paying both the foreign and local currency components to growers.

Separately, AMA said a validation exercise conducted with Government departments, contractors and farmers’ unions in key cotton regions from April 13 to 17 points to a 33 percent increase in seed cotton output, from 29 000 tonnes last year to 38 500 tonnes this year.

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