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NewsDay

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Resuscitate DWTL — think-tank

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Business Reporter A local think-tank Zimbabwe Coalition on Debt and Development (Zimcodd) has proposed the revival of defunct David Whithead Textiles (DWTL). This will protect cotton farmers as the future of the textile industry remains bleak. Zimcodd in a statement yesterday said government should resuscitate the now defunct former Zimbabwe Sock Exchange-listed textile giant — […]

Business Reporter A local think-tank Zimbabwe Coalition on Debt and Development (Zimcodd) has proposed the revival of defunct David Whithead Textiles (DWTL). This will protect cotton farmers as the future of the textile industry remains bleak. Zimcodd in a statement yesterday said government should resuscitate the now defunct former Zimbabwe Sock Exchange-listed textile giant — DWTL — and protect the textile industry against stiff competition from cheap Chinese imports and second-hand apparels. “The Zimbabwean market is currently flooded with cheap, poor-quality products from abroad and bales of second-hand clothing which have become the latest and popular costumes in all corners of the country,” said Zimcodd. Official figures show that several clothing and textile firms were currently under judicial management. Players in the textile industry say high production overheads, obsolete equipment, exorbitant interest rates, power blackouts and high electricity tariffs, have discouraged new investment in the sector that requires $50 million in urgent capital injection. Zimcodd said the government should provide subsidies to farmers. “There is need to enact long-term policies that will sustain the local cotton production, processing and marketing to promote local demand rather than rely on exports where prices are uncertain and are determined at international demand and supply level,” Zimcodd said. Zimcodd also said the government should put in place an empowerment programme for small-scale cotton farmers in value addition such as microginning in cotton growing regions. Cotton farming is a source of livelihood for nearly 300 000 small-scale farmers found in arid and semi-arid regions of Zimbabwe such as Gokwe North and South, Sanyati, Muzarabani, Mt Darwin, Guruve, Mbire, Binga and Chipinge.

“Farmers should be assisted to take part in the textile industry through enacting policies that allow the equal participation of these farmers,” Zimcodd said.

“Local ginning will ensure that cotton seed and other farming inputs are available in retail outlets so that at the same time ownership of by products such as seeds, oil and cattle feed all of which add value in their farming lives is ensured.”

The move by the government to become sole buyer of the cotton crop through the re-establishment of the Cotton Marketing Board, according to the think-tank, will prevent the dispute that has threatened the collapse of the cotton industry in Zimbabwe.

“Should this move materialise many families whose livelihoods are dependent on cotton farming will stand to benefit from better prices as opposed to those currently being offered by the cotton buying companies,” said Zimcodd.

Current prices as announced by the Agricultural Marketing Authority range from $0,36 for the lowest grade to about $0,50 per kg for Grade A cotton.

“There is need for greater people-centred, participatory, and consultative process that includes farmers on issues affecting them with particular attention to price setting.

“The current Cotton Marketing Technical Committee has failed to address the farmers’ interests in price negotiations,” Zimcodd added.