Home / Knowledge / News / Textiles / Zimbabwe cotton contractors await repayment of US$ 19mn
Zimbabwe cotton contractors await repayment of US$ 19mn
Mar '13
Cotton contracting companies in Zimbabwe still await the repayment of the US$ 19 million of the US$ 42 million invested by them to enhance production, as several cotton farmers breached their contracts and side marketed their output to avoid repayment, according to a Herald Online report.
David Machingaidze, Chairman of the Cotton Ginners Association said cotton was cultivated on 480,000 hectares of area in the country during last season, and only two percent of this was free cotton, that is, it was grown without obtaining any finances from contracting companies.
However, the contractors are still awaiting recovery of US$ 19 million of the US$ 42 million extended to fund cotton production.
During last year, the financers recovered only 55 percent of the amount invested, which is the lowest rate so far, Mr. Machingaidze said.
While some farmers engaged in side marketing of their crops, some others sold their produce at lower prices, not sufficient enough to allow them to repay their loans, the Herald report stated. 
Cotton contractors mostly secure funds for financing through seasonal bank loans, and repayment breaches directly impact future lending, Mr. Machingaidze, who also serves as the Managing Director of Cottco, said.
Liquidity crisis has even thrown some of the contractors out of business and there were only 15 cotton contracting companies last year, compared to 25 firms about three years ago, Mr. Machingaidze said.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search