COTTON Producers and Marketers Association of Zimbabwe president Stewart Mubonderi has urged Cottco to fulfill its obligations by paying the 2022/23 legacy debt of US$5,6 million to promote production of the “white gold”.
Cotton is the second most exported crop, after tobacco.
“We want to call upon Cottco to honour their obligations and make sure that these farmers are paid,” Mubonderi told NewsDay Business.
He added that Cottco’s failure to pay farmers would lead to a dip in the crop’s output for the current season.
“The cotton for that year was produced, it was delivered to Cottco, they sold the crop and we wonder why farmers were not paid,” Mubonderi said.
“As farmers, we are worried that cotton-growing areas that are dependent on cotton only will be seriously impacted and affected. We feel Cottco should do more to assist farmers in getting paid; they should get their money.”
He added: “Farming is a business. When farmers are not paid, they become discouraged and it affects the whole chain from the farmer, the transporter, the industries, and bringing in foreign currency to the country.”
“So, as a company, Cottco itself, its image will be tarnished. It also leads to serious side marketing because farmers don’t have trust,” Mubonderi said.
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Cottco chief executive officer Rockie Mutenha confirmed that it owed US$5,6 million to farmers.
“We have got the outstanding debts, what we would call legacy debts from previous years, 2022 -2023. Yes, admittedly, we are owing farmers US$5,6 million half of which must be paid in the ZiG currency,” he said.
“We are making frantic efforts to ensure that we get that money to pay the farmers. We have approached all relevant authorities that we think will assist us and our plight and the applications are under consideration.”
He hoped the matter would be resolved soon.
“We are hoping that very soon if we get the money from them, we should be able to pay our valued customers, who are our farmers, the stakeholders,”Mutenha said.
“We need them; they are at the centre of our hearts and we want to ensure that we pay them.”
