Zambia: Two Agree On Cotton Price

17 June 2011

The Cotton Association of Zambia (CAZ) and the Ginneries Association of Zambia (GAZ) have finally agreed on this year’s cotton price at K3,200 per kilogramme.

The two associations had earlier failed to agree on this year’s cotton price even after a series of meetings in Chipata and Lusaka.

CAZ, which consists of farmers, had demanded that this year’s cotton price be pegged at K5,000 while GAZ was offering K3, 200 per Kg.

The stalled negotiations had led to the delay in the opening of the cotton sales market in Zambia.

GAZ had already started buying the commodity from farmers at K3,200 per kg.

CAZ chairperson Christopher Mweetwa said in Chipata yesterday that the two associations finally agreed to trade the commodity at K3,200 per Kilogramme.

Mr Mweetwa said the two associations arrived at the K3,200 per kg because of the volatile market price of the commodity on the international market.

He said cotton farmers across the country should trade at the agreed price level because this was a good deal as many issues were considered before the two associations settled for the K3,200 per kg

In another development, Mr Mweetwa said GAZ had offered to pay an extra K125 per kg to all the farmers who were going to service their loans which they obtained from the outgrower schemes.

“We had a meeting in Lusaka last week on Thursday, where CAZ , GAZ, including the Cotton Board of Zambia (CBZ) officials finally agreed that this year’s official cotton price be pegged at K3,200 ” he said

And GAZ Chief Executive Secretary Bonny Choka confirmed the new prices but declined to comment further.

“I think GAZ will issue a Press statement on the matter some time next week” he said.

CAZ had appealed to the CBZ, a Government agency, to intervene in the matter to protect the interests of farmers who were allegedly being exploited by some ginneries.

Last year, the cotton price was at K3,200 per kg.

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