Online Reporter
Lovemore Kadzura
Mutare Bureau
THE Agricultural and Marketing Authority has warned errant contractors that it will not hesitate to invoke the law to deal with those bent on shortchanging farmers by not adhering to their contractual obligations.
It urged contractors to supply inputs on time and also pledged to enforce the ban on side marketing.
In a statement, the authority, which governs the marketing of agricultural commodities, implored contractors to abide by the laws governing agricultural contracting including registering contracts with the authority.
It warned farmers against violating their contracts by carrying out illegal activities such as side marketing and diversion of inputs.
The contract system has proved to be the backbone of the country’s agricultural financing system which became prevalent following the reluctance by banks to provide loans to farmers citing lack of collateral.
All major cash crops such as tobacco, wheat, cotton and horticultural products are being financed by contractors.
However, the contract system is facing challenges from both errant contractors and farmers who do not adhere to set guidelines and agreements, threatening the viability of the system.
“The Agricultural Marketing Authority hereby notifies all contractors to comply with the provision of Statutory Instrument 140 of 2013 as amended by Statutory Instrument 274 of 2021. In terms of the given regulations, every contractor must be registered with the authority.
“Further a contractor who fails to deliver inputs, fails to deliver inputs timeously and fails to pay the purchase price as agreed in the contract, shall be liable for any losses and to compensate the grower double the mount any monies used to purchase inputs by the grower due to failure of the contractor to deliver inputs.
“Similarly, any grower who violates contractual arrangements shall be guilty of an offence and liable to a fine not exceeding three times the value of the inputs, or in default to imprisonment for a period not exceeding six months or to both such fine and imprisonment.
“All contractors are compelled to submit complete updated farmer registers by December 15 2025, just as individual growers are also required to register by that date. Contractors and growers are therefore encouraged to ensure full adherence and compliance to the contracting arrangements as required by law to avoid any punitive action being undertaken on errant behaviour,” read the statement.
Farmers said the contract system should be jealously guarded as it has provided a lifeline to them in the absence of long term loans in the market.
Headlands Small Scale Farmers chairman Mr Innocent Magutakuona said small scale farmers were the largest group of victims of skewed contracts as contractors sometimes took advantage of their desperation for inputs.
