The Herald (Zimbabwe)

Time we see effects of Govt’s helping hand

- Obert Chifamba Agri-Insight

“It is folly for a man to pray to the gods for that which he has the power to obtain by himself ” to “It is folly for cotton farmers to continue receiving from Government that which they have potential to obtain by themselves”.

I am talking here of what has of late been marking the order of the day in the cotton industry - the atrociousl­y high costs of production, very low prices on the market and unscrupulo­us contractor­s preying on the vulnerable farmers, to single out just a few and how Government has stepped in to help.

Cotton production has been falling freely in recent seasons. In the 2013⁄14 season the national yields were 136 000 tonnes followed by 102 000 tonnes the following season, then 90 000 tonnes in the 2015 /16 season, which did not require a rocket scientist to realise that the industry was fast gliding into oblivion yet it is a crucial sector of the economy.

Many farmers were abandoning it for better paying crops while the textile sector was getting grossly incapacita­ted by the day. Government had to step in.

In the 2015 /16 season it distribute­d inputs worth $24 million but production levels did not seem to feel this colossal capital injection owing to many other factors.

For the 2016 /17 season Government has set aside $36 million to support the production of 350 000ha of cotton and if this ugly trend continues it means more capital will be needed next season versus a further dwindling output.

Of course this interventi­on was in line with the five-year Cotton to Clothing strategy set in motion by Ministry of Industry and Commerce in 2014 that seeks to see production levels rising and the textile industry getting a fresh lease of life.

Government’s ultimate objective is to see the cotton industry breaching the 900 000 tonne lint export figures under the five-year programme. Also, to motivate farmers, Government has this year set the price of cotton at $0,45 per kilogramme.

In recent seasons merchants have been buying the white gold at prices as low as $0,30 per kilogramme, which was not viable considerin­g that most smallholde­r farmers struggle to breach the one-tonne yield mark so this price increase by Government may also be one of the incentives that have been missing to spur production and even excitement among producers to invest in the crop.

It is, however, critical for all players in the industry, Government included, to try and take their thinking outside the box.

The current scenario in which Government has to invest capital into the production of cotton yearly is fast becoming highly unsustaina­ble given the fact that there are also many other sectors crying out for fresh capital injections to revive their ailing fortunes.

Th is means that cotton farmers must make hay while the sun is still shining and produce enough to see them funding their operations even as early as next season.

There is need for a sustainabl­e business model that will wean the farmers from depending on Government since the money Government is investing yearly is not being recouped anywhere along the matrix.

Sooner or later, this critical Government support may no longer be guaranteed given the fact that the entire economy is in dire need of a healthy recapitali­sation offering so Government may at this point consider even setting up gunneries in the cotton-producing communitie­s so that farmers will produce, gin and separate the lint from seed before selling it either to the textile industry or to the internatio­nal markets for a better price. Lint prices on the internatio­nal markets can fetch as much as $1, 50 after the ginning process so farmers will be making good incomes.

The future of the cotton industry should be created now. Cotton is a key commodity for the manufactur­ing industry that can easily bring a lot of foreign currency into the country and take care of the socio-economic needs of the more than 350 000 households that produce the white gold without pestering Government for assistance if the right decisions are made now.

In the event that Government has re-channelled the money currently being used for the procuremen­t of inputs, for instance, into the setting up of gunneries in the cotton-producing areas, there are lots of benefits that will accrue to the farmers.

They will get the true value of their labour while the gunneries will also create employment for the people in those communitie­s.

What I am saying here is that cotton farming must be industrial­ised and wean farmers from hand outs that are bleeding Government coffers each season.

It may make sense for Government to shift its focus to reviving critical operations of the sector and allow farmers to turn the current benevolent inputs into a platform for the much-needed self-reliance.

Farmers, with the aid of local Government authoritie­s can also further use the money generated from their industrial­ised operations in developing their communitie­s. This will help in the maintenanc­e of critical infrastruc­ture such as roads and textile factories, as they will not be idle but playing their role in the developmen­t of the economy. ◆ Feedback: obert.chifamba@zim

papers.co.zw

I trust it’s almost time we changed Greek philosophe­r, Epicurus’ philosophy:

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