By Rudo Saungweme                                                                                  

Minister of Finance and Economic Development Professor Mthuli Ncube has announced in a press statement today that Government has effected funding for the procurement of grain at market prices and selling the same to registered maize millers.

Minister Ncube said that this move fulfils the announcement by His Excellency President Emmerson Mnangagwa that subsidies on grain must be restored.

“As you may be aware, His Excellency President, Cde E.D Mnangagwa announced that subsidies on maize be restored in order to cushion the vulnerable groups of our society from the negative impact of increases in basic food prices,” said Professor Ncube.

Minister Ncube said that this subsidy model will create fiscal space for Treasury to finance other social protection programme.

He said that Government will ensure that the requisite monthly tonnage of 40 000 MT required for producing 32 000MT of roller meal will be timely availed by Grain Marketing Board (GMB) to members of the Grain Millers Association of Zimbabwe (GMAZ).

Professor Ncube said that the new price for a 10 kg bag of mealie-meal is now ZWL$ 50.

“In this regard, the new subsidy model will therefore target the production of roller meal resulting in the retail price of ZWL$50 for a 10kg bag.

“The payment modalities for the new targeted subsidy for roller has been discussed and agreed with GMAZ, whose members have a 95 % share of the roller meal market ,”said the Minister.

Minister Ncube said that the implementation of this new subsidy is with immediate effect.

The removal of subsidy on grain had negatively affected the general populace, as prices of maize meal had gone beyond the reach of many. For example a 10kg bag of maize meal had been increased to over Z$100.

The restoration of the grain subsidy follows President Mnangagwa’s address to youths who were gathered at a Youth Indaba last week in Kadoma, where he said that he not consulted on the key policy shift in the 2020 budget on the removal of Government subsidies on maize meal and wheat. He then assured the youths present that the Government will restore the subsidy because maize meal is a basic commodity.