The move to do away with price fixing will promote market competitiveness by attracting more buyers of maize, contract farming, trade financing and price stabilisation

Grain millers and buyers are now free to buy maize at market prices after Government withdrew the regulations which fixed the price at $390 per tonne.

The regulations were made under Statutory Instrument 122 of 2014.

The SI compelled buyers to procure grain at a price pegged by the Minister of Agriculture, Mechanisation and Irrigation Development.

Under the instrument the Agriculture Marketing Authority had powers to set the price of maize, sorghum, pearl millet, wheat and finger millet at the beginning of the season

However, an outcry from the grain milling and buying industry saw Government through the Ministry of Agriculture repeal the regulations last month under SI 38 of 2015.

“The Agricultural Marketing Authority (Minimum Grain Producer Prices) Regulations, 2014, published in Statutory Instrument 122 of 2014, are repealed,” read the instrument.

Grain millers and buyers had argued that at $390 per tonne for maize, farmers could still be viable at a far less producer price of around $250 per tonne.

They also noted that Zimbabwe has the highest maize producer price in the region, ahead of Zambia at $220 per tonne and $210 in South Africa.

Industry players say the move to do away with price fixing will promote market competitiveness by attracting more buyers of maize, contract farming, trade financing and price stabilisation.

Grain Millers Association of Zimbabwe welcomed Government’s move to withdraw SI 122 of 2014.

“We sincerely believe that the demise of this unfortunate legislation will promote market competitiveness by attracting more buyers of maize, contract farming, trade financing and price stabilisation,” GMAZ executive secretary Mr Alois Sengwe said.

“It is our prayer that never again in the history of this country shall there be price fixing of agricultural commodities. GMAZ is also pleased that negotiations with farmer organisations have started in earnest for the 2015 marketing season,” said Mr Sengwe.

Government is in the process of mobilising funds to import food to avert shortages following a poor farming season which saw the country receiving erratic rains.

Vice President Emmerson Mnangagwa said last month that Government was aware of the food situation and had asked the Ministry of Finance and Economic Development to mobilise funds.

“We agreed that we were going to be importing food. We tasked the Minister of Finance and Economic Development, Patrick Chinamasa, to mobilise financial resources in anticipation of a drought,” said VP Mnangagwa. — Wires.