Govt unveils planning prices for strategic commodities

Mangaliso Lawrence Kabulika

GOVERNMENT announced planning prices for strategic commodities such as maize and traditional grains for the 2023/24 summer season in a move expected to add policy direction into farmers’ operations during a press conference in Harare yesterday.

Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka said the pricing system being proposed was consistent with achieving both food and nutrition security and macro-economic stability against the predicted El Niño prone season.

“The recommended incentive planning price for maize and traditional grains has been pegged at US$335 per tonne with the average import parity for maize at US$331 per tonne.

“The model uses a yield assumption of 5, 55 tonnes per hectare for a farmer committing inputs in the ranges highlighted in the maize budget. The major cost factor is fertiliser that takes about 36, 4 percent of the production cost of maize at US$1, 617 per hectare per hectare,” said Dr Masuka.

Minister Masuka went further to announce the prices for soya beans and sunflower at a 15 percent rate of return, for a yield of 2, 5 tonnes per hectare. Soya beans is pegged at US$569 with the import parity price ranging between US$415 and US$639 per tonne. The sunflower price was pegged at US$654 per tonne.

In its push to build the national stocks in line with the predicted El Niño, Government has allowed private players to import maize and soya bean.

“This is part of efforts to liberalise the marketing system to accommodate the private sector, which plays an important role in our economy as a country,” said Dr Masuka.

He added that his Ministry would be working out detailed modalities to determine the quantities of grain needed per household so that commercial consignments are excluded from this arrangement.

Meanwhile, farmers will also be encouraged to grow crops suitable to their various agro-ecological regions this season.

“The distribution of inputs this year will only allow for crops that are region specific. We are engaging all seed houses not to sell wrong varieties,” said Dr Masuka.

Dr Masuka hinted that Government had introduced experimental moisture enhancing this season and if effective, the programme would be introduced countrywide.

“We have also identified 90 000 hectares with potential to produce maize under irrigation this summer. There were also farmers identified in every ward who will be attached to agricultural extension officers to work together on the programme,” explained Dr Masuka.

Finance and Economic Development Minister Professor Mthuli Ncube who also attended the conference added that the involvement of private players was meant to ensure reliable supplies of food.

“Private players can import maize and soya beans duty free. They should hop in now as prices may go up in the region due to the El Nino.

“In the event that the El Niño really strikes, we are assuring the nation that there will be adequate food supplies with subsidised mealie meal,” said Prof Ncube.

Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya said the announced prices were a guide to what farmers can produce.

“Production cost must be maintained at reasonably low levels for farmers to be productive. They must be encouraged to be more productive than they were in the past as money lies in productivity. We accept the pricing bearing in mind that other producer prices will be announced soon,” said Mr Zakariya.

Zimbabwe Commercial Farmers Union (ZCFU) president Dr Shadreck Makombe added that the prices protected farmers from being exploited and that they should not go down less than they currently are because they were arrived at after considering the input costs farmers incur.

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