TENDAIISHE NYAMUKUNDA /TANATSWA KANDENGA
Farmers are pleading with the government to intervene and address the exorbitant interest rates local banks are charging on their debts as the Grain Marketing Board (GMB) is having difficulties in paying the growers for the product supplied, Business Times can report.
The Zimbabwe Farmers Union Chairman for Mashonaland Central, Daniel Chinyemba confirmed the development.
“Farmers are appealing for an urgent government intervention as they face hefty interest charges on wheat debts due to unpaid wheat from GMB as the loans last year in March will be effectively more that 12 months old, ” Chinyemba said.
He added: ” This is going to be a very big blow because the huge interest will leave the farmers in debt because they had not budgeted for this extra interest.”
Chinyemba said this is going to affect the farmers effectively as they will remain with an outstanding debt balance because the payments from GMB will fail to cover the unbudgeted debts.
“The impact shall be that some farmers shall therefore have an outstanding balance as the payments will not cover the unbudgeted interests, “Chinyemba said.
He said: “This is after the same farmers made a loss as they were paid their Zimbabwe dollars component at interest rates which were less than half the black market rates where they usually purchase their goods and services. ”
Additionally Chinyemba said delay in payment by GMB and other millers is now weakening agriculture activities and production as this is reducing farmers capabilities.
“In the meantime unidentified Millers and GMB who took farmers wheat have not yet paid the wheat farmers. This is really destroying farming confidence and reducing their capabilities,” Chinyemba said.
Edward Dune, vice president of Tobacco Farmers Union Trust weighed in saying:
“Farmers have over the years had been given a raw deal when it comes to farming financial facilities.At least Command Agriculture was a bit more friendly, a facility but the whole scenario changed at the time when this facility was transferred to banks who also in turn complain about the harshness of the financial market environment,” Dune said.
He added:”The problem is further compounded by lack or delayed payment of farmer produce by GMB. Maybe to ease the situation GMB should pay the cost of money which it owes.”
Commenting on the matter, AFC Holdings Group Head for strategy, marketing and corporate Communications, Caroline Mozhendi said if farmers have some queries and issues concerning the payments of debts they should visit their bank for discussion.
“If a farmer has any challenges with repayments they approach the bank to discuss, ” Mozhendi said.
Matilda Nyathi, Chief Marketing and Corporate Affairs Officer for CBZ Holdings Limited said that the bank understands the complexities that farmers may face when it comes to repaying their loans.
“In the event that farmers experience delays in paying back their loans due to late payments ,CBZ Agroyield takes a proactive and understanding approach to support our clients during challenging times, “Nyati told Business Times.
She added:”As a responsible financial institution, CBZ Agroyield aims to work closely with our farming clients to understand their individual circumstances. We would assess the reasons for the delayed payments and seek to provide tailored solutions to help alleviate the financial strain.”
Nyathi also said that CBZ remains committed to promoting and supporting farmers and ensuring that farmers have access to financial resources when required.
“CBZ Agroyield remains committed to fostering a supportive and collaborative relationship with our clients, including the farming community. We recognize the importance of promoting sustainable agricultural practices and ensuring that farmers have access to the financial resources they need to thrive, “Nyathi said.
