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GTAZ’s targeted maize purchase dependent on govt settling debt

GTAZ’s targeted maize purchase dependent on govt settling debt
Written by Florence Bupe
Wednesday, July 15, 2009 4:19:58 PM

THE Grain Traders Association of Zambia (GTAZ) has disclosed that it will not be able to purchase the targeted 300,000 metric tonnes of maize during this year’s marketing season if government fails to liquidate the debt owed to the association.

In an interview, GTAZ chairperson George Liacopoulos said the association was currently engaged in negotiations with the government aimed at recovering the money owed by the Food Reserve Agency (FRA).

“This year we intend to purchase 300,000 metric tonnes of maize grain valued at US $75 million (about K390 billion), but meeting this target really depends on government settling the debt that is owed through FRA,” he said.

Liacopoulos expressed hope that the negotiations would be concluded within the next two weeks.

He said the association’s participation in this year’s grain purchasing exercise had so far remained limited due to financial constraints.

“The GTAZ participation in this year’s marketing exercise has been limited this far. This is due to financial constraints experienced by the members of the association arising from the outstanding amounts owed to GTAZ for maize supplied under the subsidy programme earlier this year,” he explained.

Liacopoulos said it was imperative for the ministry of agriculture to ensure that the debt owed to the association was settled hastily to allow for the association’s enhanced participation in the grain purchasing exercise.

FRA public relations officer Mwamba Siame confirmed that FRA owed the association, but declined to disclose the amount.

“We are unable to tell you how much we owe as at now because there are certain procedures that need to be followed,” said Siame.

This year’s grain purchasing season has so far been marred by criticism by various stakeholders, including small-scale farmers.

Last week, the Zambia National Farmers Union (ZNFU) complained that the K20 billion released to FRA so far for the maize purchasing exercise was inadequate, adding that there was need to allow other players in the market purchase more maize.

ZNFU president Jervis Zimba further observed that the 110,000 metric tonne that FRA intends to buy this year, out of the estimated harvest of 1.8 million metric tonnes was too low.

Labels: GEORGE LIACOPOULOS, GTAZ, MAIZE

posted by MrK @ 3:15 PM