Staff Reporter
Ministry of Lands, Agriculture, Fisheries, Water and Rural Development (MLAFWRD) has revealed that it has submitted to Cabinet for approval, the proposed pre-planting producer prices 2022/23 winter wheat and grain production.
A Contact from the MLAFWRD hinted to the publication that the Treasury is in agreement with the Ministry’s proposed prices, however the payment modalities as to the proportions of US$ and ZW$ are still yet to be deliberated upon.
The proposed prices by MLAFWRD indicate that the marketing season price for maize and traditional grains, soya bean and wheat has a 15% market rate of return whilst sunflower is based on the 20% margin on the marketing price for soya bean.
The contact also indicated that the proposed prices for maize, traditional grains, soya bean, sunflower and wheat are obligatory prices for commodities being purchased by the Grain Marketing Board (GMB) and that the GMB will only purchase strategic commodities financed under the Presidential Input Programme as well as by self-financed farmers.
The proposed producer prices will enable farmers to make a reasonable profit this marketing season as opposed to last season by a 10-20% margin rate. However, this applies in the presence of good agronomic practices and absence of adverse conditions, like unfavourable weather patterns that affect yield.
The proposed marketing arrangement which involves contractors being allowed to buy back their contracted crop will go a long way in relieving the GMB of having to buy all grain in the country which might strain Treasury.
The proposed provision of a statutory instrument from the Government will mandate private players to provide returns on storage grains this will allow the tracking of the national stock of maize.
The tracking of the national stock price will help the Government to keep up with the progress of the national stock of maize and give adequate room to make adjustments where necessary.