The Sunday Mail
Michael Tome
Business Reporter
COTTON production is on a recovery path following significant injection of funds into the crop’s production for the 2019/20 agricultural season, a local cotton company, Southern Cotton Company (SCC), has revealed.
To complement the already in traction Presidential Input Scheme, Southern Cotton Company has offered to sponsor at least 50 000 hectares worth $25 million.
The funding is expected to be spread throughout the lowveld areas like Muzarabani, Rushinga and the whole of Mbire district, while targeting other areas including Shamva and Mutoko. The firm is also eyeing to set its footprint in Gokwe and Sanyati in the Midlands.
Cotton production plummeted in recent years attributable to low prices, poor funding and only last year the significantly funded cotton production fell victim to severe drought which was El Nino induced.
According to the Agricultural Marketing Authority (AMA), cotton output declined by 52 percent last season due a severe drought although the level of funding had increased.
Southern Cotton Company Managing Director Caos Nzenze, told Sunday Mail that he is hopeful that the sector is set for revival in the approaching season on the back of increased financial support.
Mr Nzenze indicated that preparations for the forthcoming cotton season were at an advanced stage and would surpass last season’s funding.
In the 2018/19 cotton production and marketing season, six companies registered just over 357 000 cotton farmers countrywide to produce the commodity.
Cottco was the largest funder of the sector contributing $39 million in inputs, while the balance came from SCC and other players in the industry. Cottco administers the Presidential Inputs Scheme and therefore, contributed the highest funding at 75 percent.
Southern Cotton Company supported both small-scale and commercial farmers with inputs and chemicals last season to the tune of US$4.1 million. The wholly Zimbabwean-owned company’s disbursements in the just-ended cotton production and marketing made it the second largest sponsor of the sector significantly increasing its market share to 11 percent.
The Cotton Producers and Marketers’ Association chairman Stewart Mubonderi, was quite positive that the cotton sector’s revival was imminent as financial support had improved through the Government Input Scheme.
“Southern Cotton Company was restructured by the Reserve Bank through Zimbabwe Asset Management Company and it is complementing well the Government Inputs Scheme as a result of that assistance,” said Mr Mubonderi.
Industry and Commerce Minister Nqobizitha Ndlovu is on record challenging major firms in the textile industry to harness full benefits of the sector’s value chain as it is a low hanging fruit.
Zimbabwe uses 30 percent of locally grown cotton and 70 percent is exported to textile industries dotted around the world, hence, failing to exploit competitive advantage in cotton value chain considering the country’s ability to grow the essential raw material locally.
The local fabric market is now dominated by imports particularly from China, Pakistan and India. Most clothing retail shops are also largely packed with imported clothes.
Early this year, uniform prices skyrocketed beyond the means of the majority of ordinary citizens owing to a deficiency created by an incapacitated textile industry. Clothing companies now import garments worth millions of dollars yearly rendering textile industry redundant.
