By Nita Karume:
Cotton growers from Zimbabwe will be paid an export incentive of 10%. This is a move by the Government to boost production of the crop.
In a statement released yesterday, the Reserve Bank governor, Dr John Mangudya, said farmers will also get $40 cash per each bale sold. He further added that the balance of the same will be deposited into the grower’s account or mobile wallet account. This, he says, is in preparation of the looming cotton marketing season.
As such, he requested the cotton wholesalers to submit a list of growers as well as their account details before the 7th of each month to ensure smooth operations as far as the incentive payment is concerned. According to Mangudya, the payment of particular sum to the farmers also seeks to promote the use of plastic money.
Mr. Mangudya also clarified that purchase of the cotton seeds shall continue through the use of offshore lines of credit. As such, the cotton wholesalers were advised to secure offshore lines of credit prior to purchasing seed cotton. He further added that only the cotton wholesalers that are financed by the government and those financing cotton production from their own pockets will be allowed to purchase the cotton seeds. This, he says, is to avoid any doubt and or confusion
Cotton is an important crop in Zimbabwe and as such, the farmers require sufficient funding. It provides raw materials for the textile industry, cooking oil and stock feeds manufacturers. For the past season, the Presidential Inputs Scheme has been solely responsible for the funding of cotton production in the country. The scheme, which was to run for three years, has seen an appeal from the cotton growers who seek an extension from the government.