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Low grade cotton causes industry to lose US $15m annually
18
Nov '10
According to the Director General of the Cotton Ginners Association, Mr Godfrey Buka, the cotton industry in Zimbabwe is losing US $15 million every year as a result of the low grade of cotton being supplied by the cotton growers.

He stated that deregulation of the sector had led to the decline in standards. Earlier Zimbabwe used to produce higher grades of cotton which enabled the domestic lint to earn a better rating in the global market.

He added that, circulation of the Statutory Instrument 142 of 2009, which controls the industry, is expected to transform the scenario.

Due to deregulation of the sector, it was no longer obligatory for the cotton growers to maintain the quality standards. The fall in quality affects the industry and costs it US $15 million yearly on the basis of the present crop size, Buka stated.

The existence of the domestic cotton sector depended on the scheme of contract farming. Under this scheme, the cotton growers were supplied with inputs. But the industry is likely to collapse once the contractors pull out themselves.

Zimbabwe has 12 registered contractors, which had fallen down from 25 in 2007, to supply inputs to the cotton growers. But, the Statutory Instrument 142 of 2009 has saved the industry from collapsing as the total yield increased by 30 percent from 207,000 tons in 2009 to 270,000 tons in 2010, he said.

According to him, if the situation is efficiently regulated, it will enable higher crop production.

Fibre2fashion News Desk-India


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