Treasury has released ZW$750 million as part payment of the ZW$2 billion subsidy for 2021 cotton deliveries.
A contact in the Ministry of Finance and Economic Development revealed that after the latest payment of ZW$750 million, Treasury has now paid a total of ZW$1.250 billion of the ZW$2 billion.
“Cottco is happy with Government progress of clearing the ZW$2 billion subsidy for 2021 cotton deliveries. Treasury released ZW$750 million on 5 March 2022 as part payment of the subsidy. In January this year, Treasury paid ZW$ 500 million. This now brings the amount paid to ZW$1.250 billion. The remaining balance of ZW$750 million will be cleared by the end of this month,” revealed the contact.
Meanwhile, the contact revealed that the available cotton seed for the 2022/23 cropping season was enough to cover an area of 250 000Ha out of the target of 400 000Ha.The contact further said that the outstanding seed was expected to be covered by Open Pollinated Varieties (OPV) seed.
An Agronomist from the University of Zimbabwe commended the Government for settling debts to farmers saying that this was a great move as it was going to motivate them to embrace cotton farming.
Cotton is one of the most important cash crop in Zimbabwe and it plays a dominant role in the industrial and agricultural economy of the country.