|Cotton price gazetted|
|Tuesday, 19 June 2012 12:00|
Martin Kadzere Senior Business Reporter
buyers will be required to buy the crop at a price fixed by the Ministry of Agriculture, Mechanisation and Irrigation Development.
Marketing Board for reimbursement of their inputs.
“Even a buyer who provided growers with inputs for the purpose of growing seed cotton fails to pay an amount equivalent to the amount fixed by the minister, he or she may make an application to the Grain Marketing Board for the reimbursement,” reads part of the Statutory Instrument.
The gazetting of the statutory instrument follows a deadlock between the farmers and the growers over the minimum price.
Globally, cotton farmers experience similar challenges with producer prices. But countries such as the US have managed to keep their farmers in production by providing subsidies. China also subsidises producers to keep them motivated.
Countries such as India have become more competitive through the use of biotechnology. In addition, they also provide minimum support prices.
“It is one of the industries that had been weaned off from Treasury as a result of growing support from the private sector,” said a Harare-based economist.
“After all, does GMB have the capacity to reimburse the buyers?”