Govts must address policies that create imbalances, advises GTAZ

Govts must address policies that create imbalances, advises GTAZ
By Kabanda Chulu in Addis Ababa, Ethiopia
Sun 29 Nov. 2009, 04:00 CAT

GRAIN Traders Association of Zambia (GTAZ) executive director Jacob Mwale has advised regional governments to address policies that create imbalances in the marketing of agriculture commodities.

And Southern African Confederation of Agricultural Union SACAU chief executive director Ishmael Sunga has said food security will be difficult to be attained if certain basic fundamental are not addressed.

Giving a regional perspective from a traders' point of view during the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) second stakeholders meeting on Friday, Mwale said the prevailing mistrust between governments and traders should not be allowed to continue.

“We have to harmonise and find ways of working with governments and these imbalances should be addressed through good policies so that import and export restrictions are carefully planned. For instance, some governments can just wake up and say ‘don't import or export such and such a commodity’,” Mwale said.

“Actually these imbalances are creating instability in the market as you know traders react to conditions prevailing in the market hence the need for harmony among the stakeholders.”

He said it becomes difficult to operate in an environment which is not predictable.

“In some countries, government will just wake up and say we have entered the market buy such and such commodities and as traders, you are forced to sit on the fence and watch because governments should just create an enabling environment for the private sector to operate,” said Mwale.

And Eastern and Southern Africa Farmers Association representative Stephen Mushili said many farmers lack the capacity to position themselves to gain from the emerging market opportunities.

“Just last week the East African Community signed a customs union to result in a bigger market but farmers will not respond favourably since they lack capacity and they will not be in a position to influence the dynamics in these markets,” said Mushili.

And Sunga said in some instances, the marketplace was not fair to farmers due to lack of transparency in the value chain.

“The motivation for farmers is not necessarily to feed the nation but themselves and make income out of the surplus which they expect to realise good returns.

But sometimes the market is not fair and if the lack of transparency is not addressed in the value chain, then food security will not be attained,” said Sunga. “In this value chain, farmers are always in the receiving end due to low prices which are offered by other players.”