Zimbabwean cotton farmers have urged the government to pay its share of the producer price on time for the current selling season in order to maintain the value of their profits from cotton deliveries.
Prices for most household goods have recently risen in reaction to an increase in the foreign currency parallel market exchange rate, and farmers are concerned that if the trend continues, they may not be able to realise the full value of their investment.
Notably, inflation is expected to decrease further in tandem, supported by a more stable currency rate, monetary and fiscal discipline (to restrict liquidity), to between 22 and 35 percent by year end.
Farmers in Zimbabwe are protesting against the Government’s decision to pay their outstanding cotton payments. They argue that there is a huge disparity between the parallel market exchange rate of $140:1 USD and the official auction price of $88:US$1. Most businesses are pegging Zimbabwean dollar prices using the black market rates.
Cottco is the vehicle used by the Government to implement the State-sponsored free inputs scheme for farmers.