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Senior Business Reporter
THE Zimbabwe Commercial Farmers Union (ZCFU) says delays in establishing the Agriculture Commodities Exchange have seen farmers’ produce being undervalued in the process making farming less viable.
Government has proclaimed plans to introduce the Agriculture Commodities Exchange to ensure farmers get fair and competitive prices for their produce.
ZCFU president Wonder Chabikwa told Business Chronicle that farmers were not happy with the delays in setting up the agriculture commodities exchange.
“Following the liberalisation of agricultural produce marketing, it was hoped that farmers would enjoy fair prices for their produce on the market as buyers compete to offer best prices to the farmers.
“However, due to the absence of the agriculture commodities exchange, what is happening at the moment is that a buyer approaches a farmer and purchases the farm produce at a low price. Unfavourable prices on the market drive farmers out of business,” he said.
Announcing the 2014 national budget last year, Finance and Economic Development Minister Patrick Chinamasa said efficient marketing of agriculture commodities was key to the sustainable growth of the agriculture sector.
He said there was a need to ensure efficient market operations for agricultural commodities linking producers to buyers.
“Government has already approved the establishment of the agriculture commodities exchange, as a critical institution to support the marketing of agricultural commodities through a competitive open market.
“However, the operationalisation of agriculture commodities exchange has been delayed by administrative challenges which have now been resolved.
“This now paves way for the finalisation of the remaining logistical arrangements and its speedy operationalisation,” he said in December.
Chabikwa said ZCFU was informed that the setting up of the commodities exchange had been delayed by legal frameworks, a matter that he said had since been addressed.
The Agriculture Marketing Authority has been tasked to ensure that the exchange is in place.
However, efforts to get a comment on the progress of the establishment of a commodities exchange were unsuccessful as Agriculture, Mechanisation and Irrigation Development Deputy Minister responsible for crop production Davis Marapira referred questions to AMA chief executive officer Rocky Mutenha who declined to comment.
“I cannot comment on that matter as the Ministry of Agriculture, Mechanisation and Irrigation Development is responsible for that project (agriculture commodities exchange establishment),” said Mutenha.
Comment could also not be obtained from Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made.
Commodities to be sold through the exchange include maize, sugar beans, groundnuts, roundnuts and small grains like finger millet and millet.
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