Late payment by GMB decimating cereal crops production, farmers

FARMERS and stakeholders in the agriculture sector have bemoaned the delay in payments of delivered grains by the Grain Marketing Board (GMB).

This comes as GMB recently announced that it had cleared outstanding dues to farmers for the 2022 – 23 season covering maize and traditional grains.

This is despite the unfinished payments to some wheat farmers who are yet to be paid for the 2023 deliveries to the GMB, causing fears that the recurring trend might dissuade farmers’ production in the coming season if not addressed.

This is a disaster in waiting because a delay in last year’s wheat payments will translate to lower yields and poor quality of wheat to be produced in the imminent season.

It is therefore important for grain buyers to prioritise timely payments to support the livelihoods of farmers and ensure the sustainability of the industry.

Farmer organisations have since expressed reservations over the delayed payments normally experienced during the grain marketing season, thus imploring the government to fine-tune its funding mechanisms to ensure that farmers are paid on time.

Analysts say the GMB must make it a habit to timeously mobilise the necessary financial resources to ensure prompt payment of farmers’ produce during the marketing season to ensure the continued viability of the agriculture sector.

There is a growing trend where farmers are losing value of their produce due to late payments, upsetting the farmer’s preparations for the following season.

Apparently, this is killing agriculture outside the ravages of climate change, as it stands many farmers were financially handicapped to grow anything in the past season owing to late payments of their grain deliveries.

The argument is that preparations for the marketing season should not wait until the marketing season begins, and GMB should mobilise the needed resources on time, so that farmers can be paid on time and enjoy the “value” of their sweat.

Some onlookers insist that it is criminal to make GMB the sole buyer of grain in Zimbabwe.

GMB is the sole buyer of strategic crops like maize, soya beans, wheat, and barley which are part of the controlled produce list, which restricts farmers to sell to the GMB or contractor who would have financed production.

The controls are contained in the Statutory Instrument (SI) 145 of 2019 Grain Marketing (Control of Sale of Maize regulations 2019), SI 97 of 2021 Grain Marketing (Control of Sale of Soya Beans regulations 2021), and SI 188 of 2021 Grain Marketing (Control of Sale of Wheat and Barley regulations 2021).

Agriculture has traditionally been the mainstay of Zimbabwe’s economy and competent handling of the sector has numerous benefits to other sectors of the economy, particularly manufacturing.

“The grain marketing board wishes to advise our esteemed farmers and stakeholders that payments for summer crops (Maize and Traditional Grains) were fully paid. GMB urges farmers whose payments have not yet reflected in their bank accounts to approach any nearest Depot and have their query resolved within seven days,” said GMB chief executive officer Dr Edson Badarai in a statement.

Although it is a success story to GMB that it cleared debt for the period as mentioned earlier, farmers continue to lose as the Zimbabwe dollar component of the payment was undoubtedly reduced to nothing by inflation.

Late payments normally cause farmers to experience financial strain and difficulty in meeting operational expenses like fertiliser, seeds and labour.

It also leads to reduced production as farmers are forced to cut back on production if they are not paid on time.

Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe, lauded the recent announcement but implored the government to improve on payment timelines after the produce delivery.

“We urge GMB and the government to prioritise their funding for farmers payments because there is always a problem that money comes late, by the time you are given the money input prices will already be exorbitant which is detrimental to the farmer’s operations.

“GMB should change its attitude,” said Dr Makombe.

The agriculture sector is a significant contributor to the economy, and financial support to this sector stimulates economic growth by creating jobs, boosting local businesses, and generating income for farmers and their communities.-ebusinessweekly