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A woman picks cotton in this file picture

Lovemore Zigara Midlands Correspondent
The low cotton price has hit hard on the business operators in and around Gokwe as a result of low disposable incomes accruing to farmers.
Businesses in the town usually record brisk business during the cotton selling season as they cash in on farmers who would have sold the commodity to merchants.

Cotton prices ranged from as low as 25 cents per kilogramme to 30 cents per kg when the cotton selling season began in May but the prices have since shot up and now average between 50 cents per kilogramme and 65 cents per kilogramme.

The firming of prices comes in the wake of the withholding of cotton by farmers with some threatening not to harvest the commodity from the fields in the event that merchants do not offer competitive prices.

However, the slow start to the season has had a negative impact and business has not recovered.

Gokwe businessman and retailer Tinashe Mangisi described this year as one of the “worst years” and said business had dropped by 40 percent as compared to the same period last year.

“This has been one of the worst years in as far as business is concerned during this time of the year. Last year was not a good year but this year things are tough,” said Mangisi.

“During this time of the year we recruit extra staff so that we can cope with the number of customers doing business but this year we are experiencing a drop in sales mainly due to the low cotton prices being offered. Sales have dropped by between 30 to 40 percent as compared to the same period last year.”

Other traders at Gokwe centre concurred.

“Business has been very slow this selling season as farmers are not on a buying spree as has been the case with previous selling seasons. We are now being forced to reduce prices so we can compete for the few customers that we have,” said a trader, Sofia Moyo.

She said some had hoarded wares in bulk in anticipation of high sales are now running the risk of failing to recoup their initial cash injection.

Zimbabwe Commercial Farmers Union president, Wonder Chabikwa said the revival of the Cotton Marketing Board (CMB) by government would give farmers reprieve by giving farmers competitive prices which will enable them to break even and make a profit.

“The problems that cotton farmers are facing are as a result of liberalisation of agriculture produce which gave powers to merchants to determine the price of inputs and cotton prices. I am glad that government is reintroducing the CMB which will determine the selling price of cotton.

“This will ensure that farmers get a viable price for cotton which factors in the input costs and usually gives farmers 20 percent profit,” he said.

Chabikwa said the price regime is unsustainable and for farmers to break even, the cotton price should be pegged at the minimum of 52 cents per kg.