BULAWAYO - Eleven companies have been registered by the Cotton Marketing Technical Committee (CMTC) since its formation this year to protect the viability of the sub-sector.In a statement, The Ministry of Agriculture, Mechanisation and Irrigation Development said the committee had dealt with the registration of contractors that would promote the growing, ginning, marketing and manufacture of seed cotton and its products.
A total of 11 companies have been registered to date, the ministry said a statement. Companies that have so far been registered include Cottco, Cargill, Grafax, FSI Cotton, Parrogate, Cottzim, Romsdal, Alliance, Newcabview, Insing and Olam. The annual deadline for registration of growers and contractors and buyers had been set for August 30 and 31.
The ministry said the registration of companies was expected to arrest the problem of side marketing which is threatening the growth of the sector. The contractors had threatened to stop financing farmers due to rampant side marketing which cost them more than US$10 million last year.
The committee said the contractors would be required to buy seed cotton from the farmers with whom they had entered into contracted. Farmer would enter into contract with one company.
The committee, the Association of the Agricultural Marketing Authority and the Association of Cotton Ginners would be responsible for ensuring fair trade in the industry.
Post published in: Economy