Agriculture Reporter

The Monetary Policy Statement announced yesterday by Reserve Bank of Zimbabwe Governor, Dr John Mangudya has excited farmers who have since described it as progressive as it seeks to improve farming activities in the country.

In a statement yesterday, Dr Mangudya said tobacco and cotton farmers can now retain 75 percent and 30 percent respectively for the proceeds of their crops in hard currency up from 60 percent for tobacco farmers and 30 percent for cotton farmers.

“Accordingly, the retention threshold for tobacco and cotton growers shall be increased to 75 percent for the forthcoming tobacco and cotton marketing seasons. The funds retained by the growers shall continue to be treated as free funds,” said Dr Mangudya.

Famers who spoke to this publication said the increase in hard currency accessible after selling their produce was a step in the right direction as it will boost farming activities. One Concession tobacco farmer, Enock Mwepu, said the monetary policy showed that Government was sensitive to farmers plight who were finding it difficult to increase production on their farms due to lack of foreign currency.

“This is a progressive monetary policy to us tobacco farmers. It ensures that farmers are retaining more money in hard currency and this will boost the morale of the farmer. Farming activities now needs foreign currency as we would want to import some items. We hope that the money will be released to farmers without hassle so that they can invest it back on their farms,” said Mwepu.

Another Mazowe-based farmer Florence Chikoto further said that the 75 percent retention announced by RBZ Governor was noble as it would help farmers to restock.

“Seed and fertilizer stores now need foreign currency. If farmers get more foreign currency, this will boost productivity,” said Chikoto.

The upward review of the foreign currency retention level is in line with the Government’s development policy that seeks to boost production on farms.