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In the 2012 national budget presentation, Finance Minister Tendai Biti announced that Government had allocated $50 million to GMB for national strategic grain reserves to the parastatal for the procurement of 200 000 tonnes of grain from farmers.
“Under the national strategic grain reserves, we have procured a total of 212 000 metric tonnes of maize from farmers in the marketing season starting 1st of April 2011 ending March 2012 while 15 912 metric tonnes valued at $4,5 million is yet to be paid out by the Treasury to the parastatal so that the farmers can receive the outstanding payments,” said Mr Mandizha in an interview at the ZITF.
So far the parastatal has secured 196 088 metric tonnes of the maize valued at $56 million.
He said the parastatal had also procured 16 000 metric tonnes of wheat valued at $7,4 million adding that $6,2 million had already been paid for 13 424 metric tonnes.
“We have an unpaid balance of $1,2 million for the remaining 2 576 metric tonnes,” he said.
In the last season the producer price of maize was $285 per tonne while wheat was pegged at $466 a tonne.
“We communicate with the Treasury every Thursday giving them all the statistics and an update of the deliveries and the payment made so far is as a result of the communication we have been holding with the authorities.
“As a parastatal, we have not failed to pay the farmers for grain deliveries but it is the Treasury that has to avail the money so that the farmers are paid their dues.
“This also explains why the Minister of Finance Tendai Biti has in his budget statement announced that $50 million was allocated for the national strategic grain reserves procurement.
“And whenever the resources are availed we will always pay the farmers,” said Mr Mandizha.
Farmers have raised concern over delays in payment for grain delivered to the parastatal.
As a result of late payment of deliveries, the farmers have been adversely affected in terms of planning as they could not buy inputs on time ahead of the next farming season.
Meanwhile, Mr Mandizha said GMB was focusing on cost reduction measures to turn around its fortunes.
In 2009, the parastatal posted a loss of $18 million but was moving towards improving its profitability by adopting issues such as good corporate governance framework.
“Since 2009, GMB has experienced a cost reduction of 67 percent.
“As a result of moving from being a loss making entity to a cost reducing entity, our audited financial year for the year ending 31 March 2012, we recorded a profit of $1,5 million and in the next financial year, we are targeting a profit of $2 million,” he said.
Online Reporter