BUSINESS REPORTER
Government will make part payment to farmers in United States dollar for grain delivered to the Grain Marketing Board (GMB) as it moves to encourage early deliveries amid a low projected output this year.
Farmer will get 30% in United States dollar and the remainder will be in local currency, Finance minister Mthuli Ncube said in a statement Saturday.
“The US dollar payment will be calculated at the
prevailing willing-buyer-willing-seller rate published by the Reserve Bank of Zimbabwe on the date of delivery. The payments will be
backdated to the date of the first deliveries of this season’s maize to GMB,” Ncube said.
Farmers have been demanding to be paid in foreign currency arguing that costs have risen up sharply.
The introduction of the incentive comes after farmers recently dismissed GMB’s directive that they should deliver grain within two weeks after harvesting.
Zimbabwe’s maize output is projected to be down 43% to 1 557 914 metric tonnes from
the 2 717 171 metric tonnes which were produced in the 2020/2021 season due 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).
Ncube said the government was opening up the importation of basic goods through the lowering of import tariffs to “ensure citizens have access to affordable basic commodities”.
The move is with immediate effect and those with free funds are permitted to make use of the funds and other resources to import basic commodities, Ncube said.
