In a statement to The Zimbabwean, Kingdom Stockbrokers said this had left the farmers of the countrys staple crop disillusioned.
In Zimbabwe, most farmers have harvested their maize and other cereal crops but they are not happy with the prices that are being offered by the private buyers. The prices are too low and farmers are not able to break-even or to recapitalize in preparation for the next cropping season, Kingdom said.
Although the Grain Marketing Board is buying maize at US$265 per tonne, it does not have ready cash and growers have to wait for a long period before being paid. As a result, the cash trapped producers ended up falling prey to unscrupulous business people who are making huge profits from their grain. These buy maize at very low prices such as US$165 to US$180 per tonne.
It said similar problems were experienced in the marketing of cash crops like cotton and tobacco.
The state-run Grain Marketing Board is tasked to purchase grain from farmers as part of efforts to stimulate production and enhance food security.
This year, the undercapitalized entity lost its monopoly after the government liberalized the grain market.
Post published in: Economy