ED defends GMB prices

zanu-pf  Second Secretary and Acting President Emmerson Mnangagwa and Secretary for Finance Obert Mpofu (right) share a lighter moment at the revolutionary party’s National Fundraising Business Breakfast meeting in Harare yesterday. — Picture by Kudakwashe Hunda

zanu-pf Second Secretary and Acting President Emmerson Mnangagwa and Secretary for Finance Obert Mpofu (right) share a lighter moment at the revolutionary party’s National Fundraising Business Breakfast meeting in Harare yesterday. — Picture by Kudakwashe Hunda

Zvamaida Murwira Senior Reporter
Acting President Emmerson Mnangagwa yesterday defended an arrangement by the Grain Marketing Board (GMB) in which it buys grain from farmers at $390 per tonne and sells it to millers at $250 saying the decision was meant to ensure that millers saved foreign currency from grain imports.

Acting President Mnangagwa was addressing a Zanu-PF national fundraising business breakfast meeting in Harare held under the theme; “Command Agriculture and its Impact on the industry and the economy at large” He said the media was criticising GMB arguing that the arrangement was not economically viable.

“The media thinks it is uneconomic. It is very economic,” said Acting President Mnangagwa.

He said the $390 per tonne was meant to enable farmers to remain on the land by paying viable producer price while millers bought grain at $250 to ensure that they did not import grain thereby saving foreign currency.

“If we do not produce enough maize in this country, the millers will have to import maize from outside Zimbabwe. They will spend between $800 million and $1 billion (a year) in importing grain into Zimbabwe and that is strengthening or paying farmers in other countries,” said Acting President Mnangagwa.

“They bring in that grain at an average of the import parity price of $250 per tonne. So we got together as stakeholders, which include financial service sector, millers, seed companies, chemical companies and farming organisations and agreed with millers that they stop importing maize from other countries.”

Acting President Mnangagwa said it was agreed that the millers would pay in advance their purchase of grain from GMB and would draw down their maize while the grain utility used the money to pay farmers.

“If it is $800 million, they give us the $800 million which they have been using to import grain at $250 per tonne. Chinamasa has to pay $390 to the farmers. If we get the $250 from millers, Chinamasa will pay the difference of $140, so the fiscus has been assisted and the millers just have to draw grain from GMB,” said Acting President Mnangagwa.

He said the millers would have to make regular payments of his or her grain requirement per year to the GMB as an advance payment. “The farmer is happy, the miller is happy and we are happy. So the media, that is the trick,” said Acting President drawing laughter from the floor.

Pin It
  • Bvunzai

    I actually am confused why the millers can not be allowed to buy the maize from the farmers directly for the $250. It looks like they are the only market here. I do not understand why they have to fund GMB first – so that GMB first adds $140 per ton then buys the maize from the farmers. Are the millers paying $250 of real USD to GMB? Ko iye Chinamasa anoiwanepi $140/ton excess -how does he fund the excess?
    Why is the price pegged at $390 instead of the $250/ton? Would the Zim millers opt to buy from other countries when they can buy from local farmers at $250? Is it that we are trying to afford ourselves a false sense of viability in the farms? From my understanding the Command Agriculture beneficiaries are supposed to pay back. How can they be expected to pay back ….and the same gvt is giving them a subsidy of $140/ton? Handichazvivi kuti musoro wangu urikutenderera here or maitiro e gavhumende ndiwo arikutenderera – like a circular formula.

  • Jacob Ngotira

    Just as well comments on this subject will not be displayed. This is rubbish. What do you expect from a dead-man walking!

  • Moe_Scyslack2

    You buy something for $390 and sell it for $250 and that makes sense to you? My 10 year old is way smarter than this useless crocodile.

  • wasu

    this explains how ‘HUDOFO” has killed our country.

  • Kande Mbeu

    Agree. And to be honest, if a tonne of imported chibage can land in Harare for $140 less than it costs us to produce it, we should seriously consider just importing maize and doing something else with that land.

  • SlackJawedYokel

    Yawn. And you still wonder why our economy is in such a mess!

  • Tambai Mese Mujairane

    If my employee lost me $140per tonne, potentially between $140million to $280million in one year, then i would fire that employee at once.

    Jonso was right, this command thing , is just plainly not useful. The taxpayer is losing bigtime

  • Idiot

    Millet’s should import from within Zimbabwe

  • Hachie July

    I think he means that govt. will be paying farmers bond notes and retaining forex meant for allocation to millers. US$250 =B390!

  • Collins Tafadzwa Semu

    why dont you do that and become a millionaire kkkk

  • Matsimba

    Is not therefore treasonous to say the money is non-existent? What kind of crime where you purports to pay someone, at national level, when you know very well that you don’t have the money?

  • Matsimba

    You can say it again, this type of macro-economics can never be found in a text book!!

  • SlackJawedYokel

    What is best is to use that same land to produce maize that you can export to get that real USD250 from other countries. Better still use the land for something else more productive which you then export to get Forex. ED is lost on this one. Problem in Zim is that our leaders get lost in economics and later try to apologize ivo vatoti kuvadzisa kudhara. Just like with the diamonds