The ManicaPost
Stephen Ephraem Post Correspondent —
FARMERS in Marega area of Chipinge South recently impounded fertiliser worth $9 000 from Cotton Company of Zimbabwe accusing the company of failing to pay them a 10 cents price adjustment per kg for the seed cotton which they delivered during the 2015-2016 farming season.
The Compound L fertiliser was earmarked for distribution under Government’s Presidential Inputs Scheme.
Cotton companies in Zimbabwe buy the white fibre product using two price schemes: seasonal pool and spot cash.
Under seasonal pool, a company pays a minimum price for Grade A to D upon delivery and later completes the price payment after the company receives cash from its overseers markets.
Under spot cash, a company pays the full price to the farmers upon delivery of the seed cotton and no adjustments will follow. In this case, Cottco paid farmers a minimum of 35 cents per kg and promised to pay a further 10 cents per kg as adjustment in order to reach a full price of 45 cents per kg.
The Checheche farmers allegedly impounded the inputs as a way of recovering the 10 cents adjustments they claim Cottco has to pay them. They further claim that the arrival of inputs for a new season indicates the closure of previous season without their adjustments.
Contacted for comment, acting Managing Director for Cottco, Mr Pious Manamike, confirmed the incident, but refuted the 10 cents price adjustments claim.
Said Mr Manamike: “The disturbance was caused by some members of the community who wanted to loot fertiliser for unknown motives.
“The link of the looting incident to the 10 cents price adjustments does not hold water. As we have been distributing cotton inputs countrywide, we were updating and informing farmers who sold their seed cotton to Cottco during the previous season that the funds for the 10 cents price adjustments are being mobilised and payments will commence soon.”
