Maravi

(HERALD) Agric sector expected to grow 33pc

Agric sector expected to grow 33pc
By Bright Madera

ZIMBABWE’S agricultural sector is expected to grow by a significant 33 percent in 2010 re-emerging as the mainstay of the country’s economy on the back of increased production. Significant growth in the sector has also ignited growth across all other sectors of the economy.

Agriculture is set to register the highest growth rate this year buoyed by a rebound in tobacco production as well as favourable policies that have been put in place by Government.

Projected growth was, however, stunted by acute shortages of funding and intermittent power supplies which adversely affected the summer crop.

Farmers have managed to get sufficient inputs for the 2010/11 season with a sizeable number of farmers believed to have grown tobacco as observed from the number of farmer who have already registered to do so, which is reported to have surpassed yesteryear’s figure.

Overall, the re-emergence of the sector would mean a boost to the other sectors of the economy, notably manufacturing which depends on agriculture for some of its inputs.

Beside tobacco, growth is also expected in sugar production, at 11 percent and cotton with 23 percent.

Financial institutions have failed to make available adequate funding for the sector with a modest US$122,2 million being advanced to the farming community by Government as at September 30, 2010.

Commercial banks and other financial institutions have to date advanced US$286 million to agriculture, led by CBZ which has disbursed US$83 million.

Under the fertiliser package, farmers will get the commodity on credit, which they will pay for after harvesting. Banks will pay the producers 30 percent of the costs while guaranteeing payment of the balance once farmers sell their produce.

FBC, Agribank and ZB are some of the banks currently on the market to raise a combined US$37 million to fund the 2010/11 farming season.

Recently, financial institutions also structured a deal to ensure local firms would produce more fertiliser to meet demand. These efforts should go some way in mitigating procurement challenges that farmers are facing.

The funds were distributed towards the completion of the 2009/10 summer cropping, winter wheat, procurement of grain, irrigation infrastructure and rehabilitation, recapitalisation of Agribank and the Grain Marketing Board.

Last week, the Presidential inputs support scheme distributed US$33 million worth of inputs to farmers in a development that is expected to further boost production.

In his National Budget Statement for 2011, Finance Minister Tendai Biti said maize production in 2010 improved from 1,2 million tonnes in 2009 to 1,3 million tonnes largely underpinned by the hectarage of 1,8 million compared to last year’s 1,5 million.

He said Government inputs complemented by co-operating partners under the co-ordination of the Food and Agriculture Organisation also enhanced maize production.

Meanwhile, the 2010 winter cropping season has been described as a disaster, and extremely low yields are expected. Over 1 000 hectares of wheat were harvested, producing 1 566 tonnes of the crop.

About 12 367 hectares of land was put under wheat this winter season.

Wheat farmers have expressed concern over the shortage of combine harvesters as well as combine harvester charges of US$85 per hectare, which they say are too high.

Cotton production is estimated to reach 260 000 tonnes in 2010 from 211 000 tonnes in 2009. The promulgation of Statutory Instrument 142 of 2010, which protects both cotton farmers and cotton buyers, through prohibiting side marketing, has built confidence in the sector.

Sugar is also expected to increase to 350 000 tonnes in 2010 from 259 000 tonnes in 2009 thanks largely to the liberalised business environment and macro-economic stability.

The sector also received 13,7 million euros for vulnerable smallholder sugar producers from the European Union under its Programme of Accompanying Measures for Sugar Protocol Countries for 2010.

During the year, Government approved 99-year leases for 1 095 farmers out of 1 265 who were successfully vetted, as it strongly warned people to stop farm invasions as they were inimical to enhanced agricultural productivity.

Labels: AGRICULTURE, SUGAR, TOBACCO

posted by MrK @ 4:15 AM