Farmers welcome centralised marketing

Boitumelo Makhurane, Business Reporter
FARMERS’ unions have welcomed the new regulations that restrict the marketing of cotton and soya bean to only registered players saying the move will enhance fair value for producers.

The new controls are contained in the Grain Marketing (Control of Sale of Cotton) Regulations 2021, which is Statutory Instrument 96 of 2021, and the Grain Marketing (Control of Sale of Soya Beans) Regulations 2021, which is Statutory Instrument 97 of 2021.

Under the new regulations both soya beans and unprocessed harvested cotton containing seeds have been declared controlled substances as defined by the Grain Marketing Act.

The main difference between the two sets of regulations is that while the Grain Marketing Board (GMB) is the only State agency that can deal in soya-beans, the cotton regulations allow “authorised agencies”, which are any other parastatal or entity acting on behalf of the Government to deal in raw unginned cotton with the same rights as the GMB.

The two sets of regulations first make it clear that anyone or any entity with a contractual obligation to deliver their soya-beans or raw cotton to a contractor must do so.

The producer price for the trading of the two commodities this year is yet to be announced.

According to the new regulations, soya-bean producers are required to sell to the GMB while raw cotton should also be sold to the same or any authorised agency at the times and places and in the quantities directed.

In separate interviews, farmers’ unions leaders commended the new regulations and hope this will help farmers get fair value for their produce and close out manipulative middlemen.

Zimbabwe Farmers’ Union executive director, Mr Paul Zakariya, said side marketing was threatening agricultural financing through contract arrangements.

“Side marketing threatens agricultural financing through contract arrangements. These statutory instruments will ensure that farmers get fair value for their produce,’’ he said.

Mr Zakariya said more avenues for agricultural financing must be opened to provide farmers with financing options as contract farming has its own challenges.

“Over dependence on contract farming has its own challenges where the contractors end up not playing fairly,’’ he said.

Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe, also said the new regulations would protect farmers from middlemen and enhance gains for their labour.

“Farmers will get their amounts fairly after the Government has approved the prices. This will ensure that farmers are fairly rewarded as opposed to the middlemen who dupe farmers of their hard work,” he said.

“We encourage farmers to be ethical in their dealing and follow agreed norms and values with the contractor. Those farmers who are not in contracts should make sure they sell to the GMB to benefit.”

Side marketing has been a problem in previous years with middlemen driving around offering farmers instant cash at usually lower prices than the contractor or the GMB will offer. There are strong suspicions that some of the middlemen are illegally exporting the produce to get foreign currency.

Exports of the two commodities by anyone except the Grain Marketing Board (GMB) were banned with the regulations put in procedures that make any of the crops in possession of middlemen involved in side-marketing. — @Boity104