Conrad Mwanawashe Business Reporter
LOCAL millers have slashed the purchase price of white maize by more than 50 percent to as low as $140 per metric tonne following the high influx of imported maize meal which is trading at $310 per metric tonne, the price at which the millers are expected to buy maize.

Grain millers have been buying white maize from local farmers at $300 per metric tonne but say that price is no longer viable following the flooding of cheap imported maize meal.

At its 26th ordinary meeting held on April 17, GMAZ national executive resolved that the milling sector must commence forthwith the procurement of white maize in all farming districts in the country, through the setting up of collection points conveniently located.

They also agreed on a producer price of $300 per tonne on cash-on-delivery basis.

But in a letter to the Permanent Secretary in the Ministry of Agriculture, Mechanisation and Irrigation Development, Mr Ringson Chitsiko dated May 6, Grain Millers Association of Zimbabwe said consequently, it has become impossible to sustain the initial proposed producer price.

“Regrettably, in light of massive import permits of maize meal which were recently issued by your ministry, the southern region of the country has now been flooded by cheap imported maize meal currently trading at $310 per tonne,” GMAZ executive secretary Mr Alois Sengwe said.

Mr Sengwe said in order to remain viable and competitive, local millers are now forced to match import parity prices.

“Consequently, it has, therefore, become impossible to sustain the initial proposed producer price of circa $300 per tonne for white maize. We regret to advise you that, unless the issue of maize meal imports is addressed, local millers and traders will be buying local white maize at prices ranging from $140 to $200 per tonne,” said Mr Sengwe.

The letter was copied to the Minister of Agriculture, Irrigation and Livestock Development, the Chief Secretary to the President and Cabinet Dr Misheck Sibanda, GMAZ chairman Mr Tafadzwa Musarara and GMAZ national executive members.

A dry spell that affected crops in most parts of the country has forced the country to import over 700 000 tonnes of maize between now and the next harvest in 2016.

Government is in the process of mobilising more grain to shore up national stock which currently holds only 150 000 tonnes of maize.

The results of the second crop assessment showed that Masvingo was the most affected province in terms of grain requirement, while Mashonaland Central and Mashonaland West have surplus.

Efforts to get a comment from Dr Made proved fruitless as his mobile phone went unanswered.