GMB needs $5m to clear debt to farmers

food_aidBULAWAYO The cash-strapped Grain Marketing Board owes farmers US$5 million for maize sold to its depots. The funds are provided for payments via the Ministry of Agriculture, Mechanisation and Irrigation Development against weekly data given to Ministry of Finance by the GMB.

In a statement, GMB said: An additional funding for 16,538mt, valued at US$5 million and handling costs, is required to clear the current deliveries up to the week ending 25th June 2010.

GMB has since increased its purchasing price to US$275 a tonne in a move described by analysts as a desperate attempt to woo back farmers who now prefer to sell to private buyers.

GMB pleaded with farmers to continue producing grain, which is said was critical for food security.

Once the money is availed from the Treasury, GMB remains committed to paying the farmers in the shortest period of time. We will continue to inform the farmers through the media when any payments become ready for, said the GMB.

Post published in: Economy

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