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(HERALD) 2011 Budget should give priority to agric sector: Experts

2011 Budget should give priority to agric sector: Experts
Business Reporter

THE 2011 National Budget should give priority to the agricultural sector to enhance productivity, industry experts have said.

Finance Minister, Tendai Biti will present his budget statement on Thursday. Despite limited resources, experts say agriculture should get at least 10 percent of the total budget as agreed by African leaders at the Second Ordinary Assembly of the African Union in Maputo in 2003.

Last year, the sector was allocated 2,47 percent of the national budget. This year, Government has already committed US$51 million input facility that covers about 440 000 A1, communal and resettled farmers.

Assuming that the funds are distributed equally, each household growing maize will receive about US$115, which is only enough to buy 50kg of AN fertiliser, 50kg of compound D and a 10kg of maize seed.

"As such, agriculture is a key enabler for the economy and increasing production should be prioritised," said chairman of portfolio committee on Budget, Finance and Investment Promotion, Mr Paddy Zhanda.

"To increase agricultural productivity, a policy that incentives farmers should be formulated. Pre-planting prices are also recommended as well as rehabilitation, maintenance and development of feeder roads especially in newly resettled farming communities should also be prioritised," he added.

Minister Biti has estimated that agriculture will grow by 19,3 percent next year, mainly driven by higher projected tobacco and cotton output.

Cotton farmers are likely to be encouraged to increase production in light of higher cotton prices, which are at a 200-year record high.

Cotton prices have been soaring based on higher global economic growth projections. Cotton Company of Zimbabwe managing director Mr David Mashingaidze said 2010/11 output is likely to be between 350 000 tonnes and 400 000 tonnes.

However, some critics say such growth may not be achieved considering little financial resources that the Government has committed.

Mr Zhanda said recapitalisation of Agribank remains paramount for provision of adequate funding to farming activities.

He said it was critical if the bank is to effectively provide leasing finance to farmers for the purchase of farm equipment.

"Agribank should be used to provide credit facilities in the range of US$10 000 and US$50 000 to communal and commercial farmers.

"Where a farmer fails to pay, the farm should be re-allocated to someone else who undertakes to settle the debt and resume production."

Agriculture is the mainstay of the economy, with 65 percent of the population’s livelihood directly dependent on the sector.

The sector also has strong backward and forward linkages with other sectors of the economy.

Over half of the inputs into agriculture are sourced from the manufacturing sector, which in turn receives 44 percent of farm output.

The Confederation of Zimbabwe Industries said revival of agricultural sector was key to improved performance in manufacturing.

"There is need for clear cut policies and strategies on reviving agriculture in Zimbabwe.

"What we normally have are announcements of producer prices, expected yields, expected deficit and import requirements," said the CZI.

Labels: 2011 BUDGET (ZIMBABWE), AGRICULTURE

posted by MrK @ 4:10 AM