Maravi

(HERALD) Maize producer price announced

Maize producer price announced
Wednesday, 25 May 2011 20:18
By Obert Chifamba

GOVERNMENT has announced a new producer price of US$285 per tonne for maize and all small grains and released an initial US$60 million to the Grain Marketing Board to start buying. The money released is enough to buy about 230 000 tonnes of grain while Government is still mobilising more money to buy grain.

Agriculture, Mechanisation and Irrigation Development Minister Joseph Made yesterday said Cabinet recommended the price that is based on the true cost of production to enable farmers to remain in business.

"Cabinet approved the price on the basis of motivating the farmers and supporting agricultural productivity at the same time. It is way above import parity and is backdated to April 1, 2011.

"Remember the maize market has been liberalised and there are many buyers who are vying for that same maize so we need to protect the farmers from middlemen who sometimes come with the other buyers," he said.

Minister Made said the price took into cognisance the fact that farmers were producing under very difficult conditions with neither credit facilities nor medium term financing.

The price will also be the same for small grains like sorghum, millet and rapoko.

"GMB should with immediate effect open buying points in all the farming communities of the country to allow farmers to easily sell their produce.

"This year's US$285 per tonne is US$10 higher than last year's US$275 per tonne, which indicates our intentions to give farmers the capacity to produce effectively," said Minister Made.

Government in setting the price intends to move to purchase the grain from all farmers for the Strategic Grain Reserves, he said.
Farmers who delivered their grain prior to the announcement of the new price will still sell at the same price.

The price that was announced yesterday will automatically become the producer price for 2012 until a new one is announced.

Farmers and other stakeholders should therefore not press Government for a new price until we know the true cost of production of the new crop, the minister said.

"We do not know the price until we produce the crop. There are many variables that will be considered in setting the price," he said.

Minister Made added that Cabinet had given the Ministries of Finance and Agriculture, Mechanisation and Irrigation Development the approval to put together a comprehensive package for all farmers next season regardless of their category in a bid to increase productivity.

He also said his ministry would this year, effect major structural changes to GMB, Agribank, ARDA and other key departments in its quest to modernise agricultural production.

"The modernisation relates to infrastructure, irrigation and mechanisation as we prepare for the support we will be getting from countries friendly to us.

"We must have all structures ready to produce effectively and later re-pay the assistance they would have given us," said Minister Made.

Labels: GRAIN MARKETING BOARD ZIMBABWE, JOSEPH MADE, MAIZE, PRICE CONTROLS

posted by MrK @ 12:48 PM