TREASURY has moved to put in place a levy on some grain imports warning that failure to do so would create an implicit subsidy on foreign grain and undermine domestic producers.
In a letter addressed to the Secretary for Agriculture, Mechanisation and Water Resources Development, dated 30 April 2026, Finance Secretary George Guvamatanga confirmed that the levy would be collected at the point of permit issuance by the Agricultural Marketing Authority (AMA).
The decision follows recommendations from a Joint Technical Committee, which identified significant pricing differentials between import parity and production parity – standing at US$40 per tonne for maize and US$50 per tonne for soybeans.
While the wheat blending ratio of 70 percent locally produced soft wheat to 30 percent imported hard wheat was deemed neutral to domestic price stability, Treasury insisted that any additional hard wheat imports must attract a charge.
“It is the considered position of Treasury that any importation of hard wheat in excess of the stipulated threshold should attract an appropriate levy or charge,” Mr Guvamatanga wrote. “This will ensure parity between import and domestic production prices, thereby safeguarding local industry and minimising implicit subsidies to imports.”
The move is designed to close a fiscal loophole where cheaper imports could otherwise undercut domestic grain, discouraging local production and straining foreign currency reserves. Treasury emphasised that the levy proceeds would not disappear into general Government coffers but would be ring-fenced for two specific purposes: farmer payments through the Grain Marketing Board (GMB), and the financing of smallholder irrigation development programmes.
Under the Public Finance Management Act, all revenues collected will accrue to the Consolidated Revenue Fund and be subject to Parliamentary appropriation.
The levy mechanism also comes against a backdrop of uneven progress in agricultural infrastructure. According to a separate project status report, several irrigation schemes across eight provinces remain incomplete due to waterlogging, delayed energisation by ZESA, or lack of water in dams. Projects in Mat South, for example, have been unable to run systems because dams are dry, while sites in Masvingo remain inaccessible due to waterlogging.
With smallholder irrigation development explicitly named as a beneficiary of the levy funds, Treasury is positioning the charge not merely as a trade defence tool but as a direct investment vehicle for climate-resilient agriculture.
“Treasury remains committed to supporting a pricing and marketing framework that promotes domestic production, ensures fair compensation to farmers, and maintains macro-economic stability,” Mr Guvamatanga said.
Strict compliance measures will apply. Monthly reporting on levy collections, import volumes, and fund utilisation has been made mandatory to ensure transparency and effective monitoring.
Failure to remit levy proceeds on time, Treasury warned, would breach the prescribed blending ratios and the financial regulations governing public funds.
Separately, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has now published the definitive levy rates for the grains and oilseed sector, effective 19 May 2026 through to 31 August 2026. In a circular dated 19 May 2026, Secretary Professor Obert Jiri confirmed the following charges: maize imports will attract US$40 per tonne;soya bean US$20 per tonne, soya meal US$35 per tonne, and soft wheat US$89,25 per tonne.
For hard wheat, the levy of US$89,25 per tonne will apply only if an importing company exceeds the 30 percent blending ratio, after which the charge becomes continuous. The Ministry said the levies were consistent with Statutory Instrument 87 of 2025 and stakeholder consultations conducted by AMA.
The levy takes immediate effect under Statutory Instrument 87 of 2025, reinforcing a broader Government push to prioritise local grain and stabilise the agricultural value chain ahead of the 2025/26 summer season.-herald
