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Cotton buying company increases purchase price

07
Jul '10
Sino-Zimbabwe Cotton Holdings has declared prices for cotton manufacturers, for low quality cotton, above prices declared in the government's gazette.

While cotton of grade A and B qualities will fetch the cotton producers, US $0.50 per kg, grade C quality of cotton will fetch them $0.45 per kg, and grade D will fetch $0.40 a kg, by the company.

In contrast, government had set a minimal cost of $0.50 per kg for grade A quality of cotton, but the lower grades were priced as low as $0.35 a kg.

Tanga Matema, Marketing Head, of the firm stated during a press conference that, about $140 million has been kept aside by the firm, for cotton. Therefore, the firm has more than the desired amount for purchasing cotton. The estimated figure for cotton output this year is set at around 280,000 tons.

Matema further stated that, the company intends to promote farmers, by giving them increased prices, so that they can cultivate cotton again. More so, Holdings will also purchase cotton, on the spot, as they have set up varied buying points across the nation.

Currently, many of Holdings' employees are in conversation with cotton farmers for the same. Matema also informed that, their company was currently setting up a ginnery in Harare to process cotton.

This ginnery is most likely to be the biggest in the country and almost nearing completion. Therefore, Holdings is generating employment with the help of this new ginnery. More so, this ginnery can process 72,000 tons of cotton.

Earlier, cotton buyers would pay $0.42 for the highest grade of cotton, whereas, $0.33 was given for the lower grades of cotton. Owing to such low prices, farmers would hold back their crop, in anticipation of receiving higher prices later.

Fibre2Fashion News Desk - India


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