Online Reporter
Edgar Vhera
Agriculture Specialist Writer
THE Grain Marketing Board has cleared all arrears from the 2024 wheat intake as it sets its sights on this season’s increased wheat production.
The parastatal owed farmers both foreign and local currency for part of the wheat delivered last season.
GMB chief executive officer, Dr Edson Badarai, revealed this in an update on grain payments.
“GMB has received ZiG69 997 798 from the Treasury. These funds have cleared outstanding obligations for wheat deliveries, while a total of ZiG57 102 258 went towards farmer obligations for current cereals deliveries. GMB remains committed to working with farmers to ensure grain self-sufficiency in the country,” he said.
The price of wheat last season was pegged at US$450 per tonne, with a premium fetching US$470.
GMB buys wheat financed under the Presidential Input Programme (PIP) and from self-financed growers. However, self-financed farmers have the flexibility to sell their wheat to the best advantage.
GMB remains the buyer of the last resort and is working with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipts services to all players, with contractors expected to buy back contracted wheat at market price.
Agriculture experts and farmers have called for the capacitation of the GMB so it can pay farmers on time.
An agriculture expert, Dr Reneth Mano, said the Government offered the best prices, but some farmers preferred other buyers
“The fact that GMB has just cleared the invoices for wheat delivered in October 2024 exclusively for Strategic Grain Reserve (SGR) means farmers have lost 10 months’ worth of the time value of their money.
“A farmer whose bank expected the wheat input loan to be repaid by December 2025 has already incurred penalty charges and irreparable reputational damage on his/her credit ratings. Yet GMB settlement of such late payments to farmers does not include compensation of farmers for such impairment,” he said.
Dr Mano said GMB should restrict itself to buying grain strictly when it has the cash in its trading account to ensure farmers are paid cash within seven to 14 days of delivery.
“In cases where the Treasury is slow in releasing money, GMB has to take some business measures to protect its reputation from further damage.
“One strategy for managing such inevitable cash flow challenges is for GMB to also take full advantage of the strategic business partnership between itself and the Zimbabwe Mercantile Exchange warehouse receipt system and daily spot market auction,” Dr Mano said.
The ZMX marketing institution brings new innovative financing options that the Government and GMB can utilise to ensure timely cash payment for all grains that farmers deliver to GMB.
About 600 000 tonnes of wheat are expected this season. The area under wheat rose 412 percent from 23 820 hectares in 2019 to 121 982 this year.
Wheat production surged 464 percent from 100 044 tonnes in 2019 to 563 961 tonnes last year as a result of the combined influence of increased area and productivity.
The country requires 360 000 tonnes of wheat per year to be self-sufficient.
The country’s production of wheat has been above the self-sufficiency level with a total production of over 375 000 tonnes in 2022 to 467 905 tonnes in the following year and 563 961 tonnes last year.
Surplus production rose from over 5 000 tonnes in 2022 to the current 203 961. This figure is expected to rise further this year if the 600 000-tonne target is attained.
