Home / Knowledge / News / Textiles / Early price fixation drives cotton sales in Zimbabwe
Early price fixation drives cotton sales in Zimbabwe
05
Jul '13
Early fixation of minimum procurement prices has boosted cotton sales in Zimbabwe this season.
 
According to Zimbabwean Agriculture Marketing Authority’s (AMA) statistics, around 41,907 tons of cotton has been traded so far since the start of the marketing season in April, herald.co.zw reported quoting Zimbabwe’s news agency New Ziana.
 
Last year, as the marketing season started late in July, following a disagreement between farmers and merchants over price, only 349,000 tons of cotton was traded during last season. 
 
However, this year farmers as well as ginners have arrived at a consensus on minimum price of US$ 0.35 per kg for D Grade cotton to US$ 0.41 per kg for A Grade cotton.
 
Rockie Mutenha, Chief Executive AMA said buyers are licensed to procure cotton only from the areas that they have financed and from some particular common buying points. Meanwhile, as per Statutory Instrument 63 of 2011, cotton contracts are volume-based, and once the farmer honours his commitment, he is free to sell rest of his produce to companies offering best prices.
 
About 14 companies have registered for procuring raw cotton during the ongoing season, he added.
 
Despite positivity, Mr. Mutenha said it does not seem possible to meet last year’s production of 349,000 tons this year.
 
Instead of the US$ 1.50 per kg price fixed by the Government, ginners only paid a price of US$ 0.35 per kg to farmers last year, forcing many farmers to abandon cotton production this season, he said.
 
Secondly, mid-season drought during January and February this year have affected the crops, and would keep the production at low level, he explained.
 
Serving as a source of livelihood for more than 250,000 families, cotton is widely grown in Muzarabani in Mashonaland Central province, Chiredzi in Masvingo province and Chipinge in Manicaland province of Zimbabwe.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search