Cotton Company of Zimbabwe (Cottco), has increased producer price of the commodity by 54 per cent to cushion growers from rising inflation. Government initially pegged the producer price of raw cotton at $1,95 per kilogramme, but prevailing high inflationary pressures have made the upward review necessary. According to Cotton Producers and Marketers Association Chairman Steward Mubonderi, this move will benefit farmers who have a late crop especially those in Chiredzi. However, to avail this benefit, the farmers need to deliver their crop early.

ZimStats’ latest figures indicate that Zimbabwe’s inflation rose to triple digit levels last month, with annual rate hitting 175.7 percent in June from 97.9 percent in May. Cottco will continue partly paying the farmers in US dollars. The company administers the Presidential Free Inputs Scheme, a state funded program meant to increase production. Nearly 400 000 farmers get assistance under the program.

Launched in 2015, the programme has helped the resuscitation of the industry with output growing from 28 000 tonnes, the lowest in nearly two decades, to 143 000 tonne last year. About 90 percent of the production was funded by Cottco.