HARARE - Zimbabwe's State run grain procurer has failed to raise US$1.6 million required to pay farmers who delivered their farm produce. The board had a long-standing monopoly on cereal purchases until March 2009, when private traders were allowed into the market.
In a bid to beat competition, the GMB set a floor price for grain of US$265, while private buyers were offering between US$180 and US$200. Now the GMB has said it has run out of cash to pay the farmers who delivered their grain.
Farmers are livid at the state of affairs, and some are demanding their grain back.
The Grain Marketing Board is pleased to advise that all the maize and wheat that was delivered during the last marketing season was paid for in full, but we have run out of cash since we exhausted the fund by the 25th of May,” GMB corporate communication manager Muriel Zemura said.
“However, it is unfortunate that the money announced by the minister of Agriculture, Mechanisation and Irrigation Development on Wednesday is not yet available and we hope the Treasury has already been advised that funding is immediately needed to improve farmer liquidity.
The government’s attempt to float grain bills to raise cash to buy maize from farmers dramatically flopped last year. Zimbabwe had in the last season produced a harvest of about 1.2 million tonnes, of which 400,000 tonnes was the surplus available for the market. But the grain bills issued to finance the purchase had no takers.
A furious farmer at Aspindale depot slammed government for “tricking us.”
We worked for this produce and we are surprised they accepted it and now they refuse to pay,” he said. The Zimbabwean on Tuesday understands the dispute involves over 7 000 tonnes of maize delivered this marketing season, whose payments remains outstanding.
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