GMB pleads for US$15m
http://www.financialgazette.co.zw
Friday, 06 August 2010 12:24
Shame Makoshori, Chief Business Reporter
EMBATTLED State-run grain procurement agency, the Grain Marketing Board
(GMB) urgently requires US$14, 7 million from Treasury to settle outstanding
payments for grain delivered by farmers between June 19 and July 30 this
year. This week, the State granary, which depends on government handouts to
settle deliveries from farmers, issued an urgent plea to Finance Minister,
Tendai Biti to release the money.
Government must also dig deeper into its depleted coffers to fund a
programme to distribute grain to millions of impoverished people currently
in dire need of food relief following poor harvests from the 2009/2010
farming season.
At least 70 percent of Zimbabwe’s 12 million people are estimated to be
living below the poverty line and are in need of urgent grain to avert
starvation.
The United Nations Development Programme said last week Zimbabwe remained in
a state of chronic vulnerability and its humanitarian crisis could worsen
despite the formation of a power-sharing government 16 months ago to tackle
the country’s long running socio-economic crisis.
On Wednesday last week, the GMB said while the targets announced by Biti
when he presented the Mid-Term Fiscal policy review statement were
achievable, government should bankroll the payment of maize already
procured.
Government has instructed GMB to restock the country’s strategic grain
reserves by 80 000 metric tonnes.
“Treasury released US$2,7 million for grain payments to farmers a fortnight
ago. Funding for deliveries made between June 19 and July 30 of 53 249
tonnes valued at US$14, 7 million is now overdue and urgently required,” GMB
corporate communications manager, Matilda Zemura said on Monday.
“We have since appealed to Treasury for funding to ensure that farmers are
paid timeously for their produce to enable them to prepare for the next
farming season,” she added.
She said farmers, who had previously resisted releasing grain to the GMB,
had started selling their crop following the recent adjustment of prices to
US$275 per tonne from US$265 per tonne.
The upsurge in deliveries brought cumulative grain stockpiles to 58 826
metric tonnes as at July 31.
Zemura said this figure was 500 percent higher than deliveries made during
the same period last year.
GMB has earmarked 35 000 metric tonnes of maize for distribution to
drought-prone regions of the country which did not harvest much this year.
“An elaborate plan to distribute maize to deficit areas is now in place,”
Zemura said.
“Treasury has since been advised of the money required for grain
distribution to deficit areas as well as for grain procurement,” she added.