Government liberalises grain marketing

GOVERNMENT has granted CBZ Bank, AFC Bank, and private financiers authority to purchase grain directly from the farmers they contracted.

On Tuesday, Cabinet received an update on the summer Crops Marketing and the Winter Wheat Planting, which was presented by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Anxious Masuka, before announcing the liberalisation of the marketing of grain.

The nation has also been informed that grain stocks held by the Grain Marketing Board (GMB) are adequate enough to take the country to the next harvest.

Grain Marketing Board (GMB)

In a post-Cabinet media briefing, Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa said: “The nation is being informed that the Second Republic has liberalised the marketing of grain and allowed CBZ Bank, AFC Bank as well as private financiers to purchase directly from farmers the grain, which they contracted to those farmers.

“The Grain Marketing Board is purchasing grain from farmers who received Government support, and from those who financed their own farming operations.”

Government has since assured farmers that payments for grain deliveries will be processed as soon as possible in order to facilitate preparations for their next operations.

Minister Mutsvangwa said grain 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.

The minister said all these stocks exclude private sector stocks adding that the nation is food secure until the next harvest.

On tobacco sales, more than 160 million kilogrammes have been sold at an average price of US$3/kg to date, exceeding the 114 million kgs sold in 2022 at an average price of US$2.99/kg.

Tobacco

“Decentralised selling points set up by the Second Republic closer to previously disadvantaged farming communities have so far contributed 40 percent of total tobacco sales,” said the minister.

“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.”

During this marketing season, the Government has adopted a grade-based pricing system payable at 85 percent in United States dollars and 15 percent 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.

However, the bulk of the crop, 85 percent, is being purchased by COTTCO under the Government Input Support Scheme.

Cottco

Turning to wheat, Minister Mutsvangwa said the 2022 Winter Season yielded a record 375 131 metric tonnes from the total of 80 883 hectares planted under various financing models.

Efforts now are underway to increase the total hectarage to 85 000 hectares and achieve a new record of 408 000 metric tonnes from the 2023 Winter Wheat Cropping Programme.

She added that the 4 257 hectares planted to wheat so far exceeds the 2 153 hectares planted by May 8, reflecting a 98 percent increase.

This week, power utility, Zesa, said 120MW of electricity will be ringfenced to ensure uninterrupted power supply to wheat farmers this coming winter.-ebusinessweekly