COTTCO has signed a worthwhile cotton lint export deal with Belarusian end user companies that will see the country by-passing merchants and getting increased earnings from its white gold in the process.
Cottco acting Chief Accounting Officer Mr Munyaradzi Chikasha revealed this yesterday saying they had reached the deal with their Belarusian counterparts who are currently in the country.
“It is the second time we have hosted the Belarusian delegation that has since confirmed that the quality of our cotton is good. Cottco has signed a memorandum of understanding (MOU) with the Belarusians who want a significant tonnage of lint.
“We will subsequently sign contracts with them in the near future to enable us to supply cotton lint to Belarusian companies,” said Mr Chikasha.
Mr Chikasha further added that Cottco would realise more margins and increased foreign currency receipts for the export of lint to end users in Belarus rather than through merchants, as has been currently happening.
A representative of the Belarusian delegation Mr Serhamasau Dzmitry said they represented 70 companies involved in the production of different kinds of clothes and yarns.
“Our country produces about 6 000 tonnes of cotton yearly. This is our second visit after coming here in December when we took samples for analysis in our laboratories. The results proved that the quality of your cotton lint was very good and one of the best.
“We have since arranged to make a trial order in July from Cottco and await the price,” said Mr Dzmitry.
In the weekly summer season report dated January 30, Agricultural and Rural Development Advisory Services (ARDAS) chief director, Professor Jiri revealed that contractors had distributed enough cotton inputs to cover 375,293ha.
The combined influence of good rains and Government’s grade-based foreign currency payment for seed cotton this coming season has led to a 23 percent increase in area planted under cotton from 166,902 hectares as at January 30 in 2022 to 205,881ha this year.
At this year’s World Cotton Day, stakeholders argued that there was no motivation for local farmers to produce quality crop, as they were all being paid the same amount of money at marketing time.
To motivate production of quality cotton the Government has set a sliding scale on prices with the best grade getting the highest price.
The 2023 cotton marketing season will see grade A cotton being bought at a price of US$0, 46 per kilogramme while grade B will fetch US$0, 43.
Grade C will be sold at US$0, 41 per kilogramme while grade D receives US$0, 40.
This is a marketed improvement from last year seed cotton was bought at the same grade D price of US$0, 30 plus $32 per kilogramme.
There was joy nationwide last year when the Government ordered that farmers’ seed cotton purchases be paid for in foreign currency on spot with the local currency component being sent through phones or bank accounts.
The call by the Government for farmers to practice good agronomic practices through the 4R concept is set to ensure that there is improved production, productivity and profitability.e