By Beatific Gumbwanda
CHIREDZI-The Cotton Company of Zimbabwe (COTTCO) has registered an accruing debt of US$5.8 million dollars in payment arrears and has been ordered to clear the debt before the end of the 2025 farming season.
Parliamentary Portfolio Committee on Lands, Agriculture, Fisheries, Water and Rural Development recently toured the Lowveld region together with Cottco, the Agricultural Marketing Authority (AMA) and the Grain Marketing Board (GMB) to monitor the cotton input distribution system.
During the tour, the committee established that there was low morale among cotton farmers due to non-payment after delivery, with a debt of about US$5.8 million dating back to 2023.
Speaking during the tour, legislator Saul Maburutse, who chairs the Parliamentary Portfolio Committee on Lands, Agriculture, Fisheries Water and Rural Development said they had established that farmers were ready to produce for their nation and Cottco admitted to owing farmers millions which they promised to pay before end of the 2025 marketing season.
“We have been touring the Lowveld to witness the input distribution system as well as establish whether the inputs are really reaching to farmers.
“AMA has introduced the new system to register farmers which is called the Biometric system which will prevent double dipping by cotton farmers. We are here at GMB Chiredzi and there are only 6 tons of fertilizers and cotton farmers are yet to get the fertilizers.
“Farmers are willing to produce cotton, especially here in the Lowveld where there is little rainfall but problem is they are still being owed their 2023 cotton payments of which Cottco is admitting the debt,” said Maburutse.
AMA Chief Executive Officer, Clever Isaya threatened to revoke licensing Cottco up until they have paid farmers their dues.
“There is outstanding payments by Cottco as there is a legacy debt of about US$5.8 million which is owed to farmers although deliveries for last season has been cleared.
“So in our discussions with Cottco today, we have been given assurances that farmers will be paid before the onset of 2025 marketing season so farmers can be rest assured that the legacy debt will be cleared.
“As AMA we are not going to license companies who owe farmers to ensure that no cotton will be taken from farmers without payment,”said Isaya.
Cottco, where the Government has about 32% of shares, has been enjoying free Presidential inputs whilst other contracting cotton companies had been paying for the inputs and were paying farmers in time.
