A merry-go-round

The government on Tuesday threw in another sweetener to encourage grain deliveries to the Grain Marketing Board (GMB): those that delivered early will get an incentive of US$90 per tonne.

The new incentive was also accompanied by a review of the producer price to ZWL$75000 per tonne from ZWL$32,000.

It also comes after Finance minister Mthuli Ncube last month said farmers would get 30% in United States dollars and the remainder in local currency.

The US$ component will be calculated at the prevailing willing-buyer-willing-seller rate published by the Reserve Bank of Zimbabwe on the date of delivery.

It also comes after Ncube recently dismissed a directive by the Grain Marketing Board to deliver grain within two weeks after harvesting.

There have been decrees of late to encourage deliveries to sole grain procurer, GMB.

Two weeks ago, the agriculture ministry ordered GMB to invoke the law and rope in security forces and undertake roadblocks to prevent side marketing of grain. This came after 5,000 metric tonnes had been delivered to the GMB from a projected harvest of 30,000 metric tonnes.

Zimbabwe’s maize output is projected to be down 43% to 1 557 914 metric tonnes from the 2 717 171 metric tonnes which was produced in the 2020/2021 season due to late rainfall and a prolonged dry spell.

Traditional grains production is projected at 194 100 metric tonnes, which is 44% less than the 347 968 metric tonnes output of the previous season.

This means that the total cereal production projection is 1 752 014 metric tonnes, against a national cereal requirement of 2 267 599 metric tonnes (1 817 599 metric tonnes for human consumption and 450 000 metric tonnes for livestock).

While the latest overtures should be applauded, they should not be in piecemeal. The projected low output this year should have spurred the government to entice  farmers to deliver the grain and not to issue threats.

Farmers feel  they are getting the short end of the stick as the government sees no problem in importing the grain.

The input costs are all priced in US$. Farmers have to look for the greenback on the parallel market to be able to buy the inputs. As such, there won’t be an incentive to deliver to GMB as they opt to sell to private buyers which will affect the strategic grain reserve.

With the economy re-dollarising, farmers that are clamouring to be paid in US$ have a valid reason as the local currency depreciates against the greenback. The government has also taken note of the depreciation allowing hospitals to peg their fees to the dollar and payable in local currency at the prevailing exchange rate.

It has also pegged the examination fees to the dollar, an admission that the local currency is losing steam. Farmers that have toiled in the fields deserve better if Zimbabwe is going to reclaim its bread basket status.