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Paidamoyo Chipunza Senior Reporter
Government has increased wheat floor prices from $466 per metric tonne to $500 per metric tonne for the 2014-2015 agricultural season, Agriculture, Mechanisation and Irrigation Minister Dr Joseph Made has said.
Dr Made said all farmers, including those who have already delivered their wheat to the Grain Marketing Board, would be paid using the new prices.
“This is a floor price to be paid by GMB to farmers who deliver to GMB. If you are a farmer and you choose to sell your wheat at a lower price to anybody else that would be your choice,” said Dr Made.
He said the price increases were meant to motivate farmers to produce more wheat.
He said an estimated 20 000 to 25 000 metric tonnes of wheat was produced this year and that the bulk of the shortfall would have to be imported.
The country needs an estimated 450 000 metric tonnes of wheat each year for bread and other purposes.
Dr Made said the increases in wheat prices should not trigger any increases in bread prices since what is going to be delivered to the GMB was just a fraction of requirements.
“No one should take advantage of these new prices because the volume to be delivered to GMB is going to be between 20 000 and 25 000 metric tonnes only,” he said.
Dr Made said in approving the new wheat prices, Cabinet took into consideration that this year farmers produced wheat under very difficult circumstances ranging from power outrages to high cost of inputs.
In line with boosting wheat production in the country, Dr Made said Cabinet had also ordered the resuscitation of irrigation schemes run by the Agricultural Rural Development Authority (ARDA).
He said it was also recommended that institutions such as ARDA return to summer wheat production whose research was done a long time ago and was found to be useful in boosting wheat production.
Dr Made said Government was looking toward wheat production of nearly 350 000 metric tonnes each year which the country used to harvest.
On irrigation, ARDA used to contribute between 15-20 percent of national requirements.
Online Reporter