Online Reporter
Elita Chikwati
The Grain Marketing Board has hailed farmers and continues to honour them for striving to ensure food security in the country.
This comes as GMB has received US$5 million from Treasury for the payment of cereal crops delivered by farmers.
In a statement, on Wednesday, GMB chief executive officer, Dr Edson Badarai, confirmed receiving the funding, which he said will enable the parastatal to clear some of the outstanding payments owed to the farmers.
He said the money would bring a positive impact on the agricultural sector as farmers would be able to invest in their business.
“The board is also grateful to the Treasury for this financial support, and appreciates Minister Anxious Masuka’s support and facilitation on this front. GMB continues to honour the role of farmers and their resilience as the country gears up for the summer season,” said Dr Badarai.
Meanwhile, 882 230 tonnes of maize, soyabeans, sorghum, wheat and sunflower have been sold formally.
During the 30th Cabinet media briefing, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said the grain and oilseed intake was 387 percent above the intake recorded at the same time last year.
“The Grain Marketing Board’s intake is 148.16 percent above last year’s intake. The Strategic Grain Reserve currently holds 141 943 tonnes of grain in stock.
“As part of promoting value chain financing of production to ensure fooad and nutrition security, and in terms of standing policy since August 2020, millers are required to secure at least 40 percent of their raw material requirements through contracting farmers,”he said.
The Government liberalised the grain marketing system, shifting from the monopoly held by the Grain Marketing Board (GMB) to a commodity exchange, a structured environment where prices are determined by supply and demand forces.
GMB is no longer the sole buyer of grain, but is now focusing on procuring enough cereals to maintain a strategic grain reserve.
Under the new framework, the Zimbabwe Mercantile Exchange (ZMX) will be promoted as the primary platform for trading agricultural produce.
The rest of the produce will be channeled through the ZMX, allowing farmers to sell directly to private buyers.
The move is expected to introduce competition, leading to better prices for farmers and a more efficient market.
By allowing market forces to determine prices, the Government aims to stimulate production and investment in the sector.
According to the Government, allowing market forces to determine the price of agricultural produce is critical in stimulating output and investment in the sector.
The move towards market-determined pricing is seen as crucial for boosting agricultural output and attracting investment in value addition and agro-processing.
Peter Tanyanyiwa