GMB pays farmers for maize deliveries

Nyemudzai Kakore Herald Correspondent
The Grain Marketing Board (GMB) has paid 99 percent of farmers who delivered over 1,4 million tonnes of grain as of January this year. The grain is stored at various depots across the country.

A GMB audited financial statement, however, indicates that the parastatal is reeling under a $208 million loss blamed on its pricing policy. GMB buys maize at $390 per tonne and sells it to millers at between $240 and $270 per tonne.

Appearing before the Parliamentary Portfolio Committee on Lands, Agriculture and Rural Resettlement chaired by Gokwe-Nembudziya legislator Cde Justice Wadyajena, GMB general manager Mr Rockie Mutenha said the entity was still to pay for 16 961 tonnes of grain. It has over one million tonnes of grain in stock comprising of maize, wheat, soya beans and small grains.

“The grain payment status as of 22 January 2017 is at 99 percent. The GMB has a combined storage capacity of 4,5 million tonnes. The depot infrastructure is composed of 12 silo depots with a holding capacity of 740 500 tonnes and 72 depots with a holding capacity of 4 179 500 tonnes. The GMB achieved a clean and unqualified audit opinion on its 2016/17 financial statements,” he said.

“The audited financial statements reflect an accumulated loss position of $208 968 178. This has been as a result of pricing policy where GMB is buying maize at $390 and selling to millers at $240 to $270 per tonne.

“Overheads are not fully recovered by storage and handling fees charged to Treasury. The current rates are at $5 per tonne for handling fees and $3 per tonne per month for storage fees against full recovery rates of $22,26 per tonne and $10 per tonne per month, respectively. The rates were last reviewed in 2009.”

On the Presidential Inputs Support Scheme, Mr Mutenha said inputs amounting to 74 130 hectares had been distributed from the targeted area of 720 000ha. He said the targeted households of 1,8 million received Presidential inputs pack per household composed of 10kg maize seed, 50kg Compound D, 50kg AN, 10kg soya bean seed or 5kg small grain seed.

When asked on infrastructure projects and storage resources to secure grain, Mr Mutenha said silo overhaul had been completed at six depots namely Bulawayo, Aspindale, Banket, Concession, Lion’s Den and Chegutu.

He said waterproofing for 10 silos was completed for Aspindale, Banket, Lion’s Den, Karoi, Magunje, Norton, Chegutu, Bulawayo, Concession and Murehwa, while Chiweshe and Mukwiti were now being waterproofed. Mr Mutenha said GMB was in the process of procuring grain storage resources for the 2018-2019 marketing season and procuring grain driers to offer grain drying services to farmers.

“The GMB has developed a plan to educate farmers on moisture content through radio, television and field days. Sufficient stock of moisture meters has been procured to assist farmers in the field and avoid inconveniencing farmers,” he said.

On the commercial agro-processing business, Mr Mutenha said GMB ventured into maize and wheat flour milling, stockfeeds manufacturing, pre-packing of rice, salt, sugar beans, maputi and bread making.