adminprocedures laid down by the exchange. Such exchanges typically act as a platform for trade in futures contracts, or for standardised contracts for future delivery.
“The Ministry of Agriculture is going to restore the commodities exchange in the next few weeks,” he said without giving actual dates.
“Government has been slow in paying farmers through the GMB.
“So we are trying to establish a market (where) the farmer is paid on the basis of supply and demand.”
Zimbabwe previously had a thriving commodity exchange, which was closed in 2001 when the Government gave the monopoly on maize and wheat trading to the GMB. But GMB has been slow in paying farmers.
Economists say a commodity exchange can be a viable alternative marketing channel for agricultural produce, as it creates a transparent, open and accessible commodities market where both buyers and sellers can participate with the full knowledge of the prevailing prices.
Lack of information had also reduced transparency of the marketing process, with no protection for the large number of farmers. As a result, farmers were selling their produce to intermediaries at low prices just to have some cash to cover day-to-day family costs.
Online Reporter