Prioritise grain debt payment, Govt urged

could worsen.
GMAZ chairman Mr Tafadzwa Musarara said the long-standing US$108 million grain debt was affecting the flow of grain into the country.
“The non-payment of these debts is affecting the flow of imported grain on collateral management agreement basis into Zimbabwe to private millers and will it also be impossible for Government to import maize to replenish strategic reserves in the near future,” he said.
Mr Musarara also said the GMB must be limited to buy grain with available funds so that it leaves residual grain for private buyers and allow farmers to receive payment on time. He also reiterated the need for the continuance of the current customs tariff regime on imported wheat and maize products as the milling industry had started recovering.
Mr Musarara alluded to the low levels of current wheat productions where national productions only provide for a month’s requirement.
“The failure by GMB to pay for deliveries is severely prejudicing farmers as they are unable to continue with farming activities. Treasury’s unfulfilled promises to support agriculture militate against national self-sufficient food production,” he said.
He said the economic crisis in Europe was affecting several food relief programmes in third world countries leaving these governments with the responsibility to provide food for the economically marginalised population.
“Treasury must mobilise funds for the refurbishment of GMB silos in the 2013 Budget to allow GMB to fully undertake its strategic grain storage mandate,” Mr Musarara said.
He added that the poor state of GMB storage facilities had resulted in more than 70 000 tonnes of grain getting contaminated and becoming unfit for human consumption further depleting strategic grain reserves.
The GMAZ also recommended that Government should consider the re-introduction of “corner shops or tuck shops” in a regulated manner to facilitate much wider distribution of staple foods at affordable prices.
“Current mark-ups of 10 percent on household flour and maize meal are too expensive for the consumers and the addition of (more) retailers will lower or stabilise prices,” Musarara said.