Zimbabwe has liberalized the marketing of grain authorising private financiers to purchase directly from farmers the grain which they contracted to those farmers, a Minister said Tuesday after the weekly cabinet session.
Information Minister Monica Mutsvangwa said banks such as CBZ Bank, AFC Bank are also allowed to purchase grain directly from farmers they contracted while the Grain Marketing Board is purchasing grain from farmers who received government support, and from those who financed their own farming operations.
“Farmers are being assured that payments for grain deliveries will be processed as soon as possible in order to facilitate preparations for their next operations,” said Mutsvangwa.
An independent economist said the move could see more grain consumed locally thereby saving the fiscus of foreign currency for exports.
“It may allow farmers to get a good price and timeous payments. As long as the maize is in Zimbabwe it will be consumed in Zimbabwe. It also relives the fiscus,” he said.
Wheat
The 2022 Winter Season yielded a record 375 131 metric tonnes from the total of 80 883 hectares planted under various financing models.
“Efforts are underway to increase the total hectarage to 85 000 and achieve a new record of 408 000 metric tonnes from the 2023 Winter Wheat Cropping Programme.
“Following a good 2022/2023 summer rainfall season, irrigation water is abundant, while farmers are being assured of dedicated power supplies for their operations. The 4 257 hectares planted to wheat so far exceeds the 2 153 hectares planted by 8 May 2022, reflecting a 98% increase,” said Mutsvangwa.
Tobacco
Over 160 million kilogrammes of tobacco have been sold at an average price of US$3/kg, surpassing the 114 million kgs sold in 2022 at an average price of US$2.99/kg.
“Decentralized selling points closer to previously disadvantaged farming communities have so far contributed 40% of total tobacco sales.
“More than 40 countries, among them China, the United Arab Emirates, South Africa, Belgium, Egypt and Indonesia are importing tobacco from Zimbabwe, and the significant foreign currency inflows are facilitating development programmes and uplifting livelihoods,” she added.
Cotton
During the current marketing season, government has adopted a grade-based pricing system payable at 85% in United States Dollars and 15% in the local currency.
The Agricultural Marketing Authority has set up 861 sales points for the 2023 cotton marketing season, where over 150 million kgs is expected to be purchased by five contractors. The bulk of the crop, 85%, is being purchased by COTTCO under the Government Input Support Scheme.
Grain stocks
Stocks held by the Grain Marketing Board comprise 220 000 metric tonnes of maize, 40 000 metric tonnes of traditional grains, and 160 000 metric tonnes of wheat.
Millers and stockfeed manufacturers are being allocated 27 000 metric tonnes of maize and up to 7 000 metric tonnes of sorghum per month. All these stocks exclude private sector stocks, and the nation is food secure until the next harvest.
