Biti castigated for GMB underfunding

pay farmers on time.
Gutu West House of Assembly representative, Cde Noel Mandebvu (Zanu-PF), said Biti’s stance had negatively affected farmers’ preparations for the forthcoming summer cropping season.
He said despite acknowledging the importance of agriculture, Minister Biti was shortchanging farmers by not providing GMB with resources to pay them on time.

Cde Mandebvu was speaking in the House of Assembly while debating President Mugabe’s speech during the official opening of the Fourth Session of the Seventh Parliament.
“I want to thank the President for his speech, especially on the contribution of agriculture to GDP,” he said.
“Agriculture has contributed nearly 40 percent to GDP, yet we are failing to give GMB money to pay farmers on time.
“This means our priorities are misplaced and farmers are now going to this year’s farming season without being paid. This shows that the MDC-T part of Government is not supporting the land reform programme by starving farmers.”

Cde Mandebvu said farmers had shown that they have the potential to contribute meaningfully to the economy, but needed support.
“The white former commercial farmers benefited from support from financial institutions, but at the moment farmers are not getting any support from banks and besides that the interest rates are prohibitive,” he said.
“Government should act as the guarantor so that farmers access loans.”

GMB has been failing to pay farmers on time for grain delivered and takes a long time to release money.
In the mid-term fiscal policy review statement recently, Minister Biti said Treasury would provide US$110 million to purchase 300 000 metric tonnes for the strategic grain reserve.
But only US$16,4 million has been released so far, with GMB collecting 180 000 metric tonnes of grain.

An official at GMB, who declined to be named, last week said the parastatal had no alternative resources to pay farmers if treasury did not release money.
“The money is supposed to come from Government as it is meant to buy grain for strategic reserves,” said the official.
“These reserves are for food security, therefore are a responsibility of the State.”

The official said that GMB could not use resources from its business ventures since they were being done using money obtained from borrowing.
“Those activities are done using money obtained at commercial rates and cannot be used to pay farmers, otherwise we will not be able to repay the loans, those two are just not related,” said the official.

Contributing to the debate in the House of Assembly, Zvimba East representative, Patrick Zhuwao (Zanu-PF), said it was important for Government to subsidise farmers if productivity was to be improved.
“Countries in the EU subsidise their farmers, that is why they grow, yet we still have people who do not understand the importance of agriculture,” he said.
Mutoko North representative, Mabel Chinomona, (Zanu-PF) bemoaned inadequate support to farmers, saying this showed there were some in the inclusive Government against success of new farmers.