COTTON farmers across the country are owed nearly US$3 million for cotton deliveries made between 2022 and 2023, a Cabinet minister has revealed.
Agriculture minister Anxious Masuka said this while responding to written questions from legislators in Parliament this week.
“Cottco is being mindful of the indebtedness to the farmers and engagements with various financiers are underway for facilities to liquidate the outstanding balances,” he said.
“To date, US$20 917 906 has been paid against a target of US$23 722 509, hence there is an outstanding debt amounting to US$ 2 804 603.”
Masuka added that continuous lobbying with financiers will continue to ensure the debt is cleared so as to allow the farmers to have sufficient revenue required for preparations for the upcoming season.
Cottco has been struggling to settle the payments due to lack of funding.
Cotton is one of the country’s major agricultural export commodities and is largely grown by smallholder farmers.
Due to a number of factors, including among others, drought, climate change, low pricing, out-of-date varieties and payment delays, Zimbabwe’s cotton output has been declining.
- Boustead Beef seeks to end CSC corporate rescue
- Unresolved land tenure dispute stifles Tongaat Hulett project
- Boustead Beef seeks to end CSC corporate rescue
- British investor makes new claim over CSC . . . Boustead says it took over full control of the beef processor in 2019
