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Farirai Machivenyika and Rejoice Makoni
The Grain Marketing Board has requested the Ministry of Finance and Economic Development to urgently release a float of $1 billion and US$1,5 million to enable it to pay farmers promptly once they deliver their grain.
Farmers have perennially complained of being paid late by the GMB which has eroded their earnings and affected their ability to finance future operations.
This has resulted in GMB approaching Treasury for the release of the funds so that its coffers have money at any given time to pay for any grain delivered.
This was said by the GMB’s finance director, Mr Clemence Guta, when he appeared before the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries and Rural Resettlement, Tuesday.
“We have also requested for a float of $1 billion and US$1,5 million so that we timely pay farmers,” Mr Guta said.
Farmers have so far delivered 3 331 tonnes of grain to the GMB worth $513,38 since the opening of the 2022-2023 marketing season.
“Total receipts to date are 3 331 MT valued at $513,38 million and US$714 000. Farmers have been the given Zimbabwe dollar component in full and the forex component is still outstanding.”
He added that they are expected to receive the outstanding foreign component this week. Maize tops the grains delivered so far with 2 846 tonnes having been delivered followed by soya beans, (234 tonnes) white sorghum (116 tonnes), red sorghum (72 tonnes), sunflower (60 tonnes) and wheat 3 tonnes. Mr Guta said the farmers had delivered to GMB 373 996 tonnesvalued at $58,97 billion and US$53,38 million which has all now been paid for.
Last month Government announced the grain producer price that will see farmers being in US dollars and local currency converted at the prevailing interbank rate in the week of delivery.
For maize and traditional grains, the GMB floor producer price is US$335 per tonne, with US$200 in foreign currency plus US$135 in local currency. Millers pay GMB a small mark up, all on the local currency component.
The GMB will be selling maize and traditional grains to millers at US$368 per tonne, paid as US$200 in foreign currency plus US$168 in Zimbabwe dollars at the interbank rate.
For soyabean, the floor producer price will be US$580 per tonne paid to farmers by GMB with US$348 in foreign currency plus US$232 in local currency at the interbank rate.
Oil expressors will pay GMB US$638 a tonne, paid as US$348 in foreign currency plus US$290 in Zimbabwe dollars.
For sunflower, the floor producer price will be US$696 per tonne and will be US$418 in foreign currency plus US$278 in local currency.
Oil expressors will pay the GMB US$765,6 per tonne with US$418 in foreign currency and US$347,6 in local currency.
The pre-planting floor producer price for wheat was set at US$520 per tonne. The GMB exit price of wheat to millers for current stocks of wheat will be reviewed to US$572 per tonne paid as US$300 in cash and the remaining US$272 in local currency equivalent.
Meanwhile GMB has warned the public against falling prey to conmen who are purporting to be its employees and moving around offering foreign currency in exchange for local currency deposits.
Several people are said to have fallen prey to the con artists who disappear as soon as money is transferred into their accounts.
Mr Guta said the conmen were targeting unsuspecting people whom they would offer US dollars purportedly on behalf of GMB. Victims were being persuaded to make local currency deposits allegedly for payment of farmers who would have delivered produce to the GMB.
In return, the victims would collect hard currency from GMB depots. However, all those who have fallen for the trick have lost millions of dollars in local currency.
Mr Guta said GMB did not have any agents for procurement and payment for any products.
“The conmen purport to facilitate timeous payment of deliveries, purchase of products and getting foreign currency. Once the conmen are paid in the given account number, they disappear without trace.”
Mr Guta encouraged people to report such incidents to any GMB depot or police station around the country.
The Government recently announced grain producer prices with maize and small grains pegged at US$335 per tonne of which US$200 is paid in foreign currency and the balance in local currency.
The floor producer price was determined on the approved pricing policy which uses a standardised production model, cost-plus pricing model, an average yield level and a 15 percent margin above break-even price and took into account submissions from all stakeholders.
Online Reporter