GMB still to pay farmers
By Bulawayo Correspondent
Sunday, 15 January 2012 13:38
HARARE – Farmers in the Matabeleland region are still to be paid for last
season’s winter wheat deliveries by the Grain Marketing Board (GMB) a
position that has negatively affected their farming activities.
Matabeleland North Zimbabwe Commercial Farmers Union (ZFCU) Chairperson
Irene Maphenduka said morale was low among farmers over the issue.
“A lot of them are still to get their payments as the GMB says it does not
have the money to pay. The farmers need the money to pay workers and buy
inputs such as fertilizers and seeds for the season currently under way,”
she said.
Maphenduka called on Finance Minister Tendai Biti to intervene by availing
more funds to GMB so that it can make payments due to farmers for various
grain deliveries.
“The finance minister should urgently release money to GMB so that it will
be able to pay farmers who desperately need it to continue with their
farming business,” she said.
Framers interviewed by businessdaily complained over delays by the GMB to
process their payments.
“I delivered 33 tonnes of wheat sometime in late October and up to now I
have not been paid,” said Melusi Moyo from Esigodni in Matabeleland South.
The situation has also impacted on farmers that had secured funding for
their winter wheat crop from commercial institutions.
“It’s unfortunate that many of us borrowed loans from banks and we are yet
to pay it back. Some of the loans have already accumulating interests,” said
another farmer Trymore Nkomo from Nyamandlovu, Matabeleland North.
“The worst thing is that we not even sure when we are likely to be paid as
GMB has not communicated anything to us.
If the GMB does not have the money it should just give us back our crop so
that we can sell to those that are willing to pay,” he added.
Efforts to get a comment from the GMB were fruitless.
Currently a tonne of wheat is pegged at US$466.
The country’s winter wheat crop has been on the decline due to incessant
power cuts by Zesa, shortage of inputs and funding.
Hactarage of wheat has declined from a high of 70 000 hectares in 2007 to
about 10 000 hectares in 2010.
The country currently requires over 300 000 tonnes of wheat per year for
consumption but farmers have failed to meet demand.
Companies have resorted to wheat imports to supplement local supply.
The ministry of Finance in the 2012 national budget has forecasted the
agricultural sector to grow by 11, 6 percent despite a failure by
government to attract enough support for its 2011/2012 farming season after
two critical fundraising schemes were unsuccessful.
The Agricultural Marketing Authority’s (AMA) $100 million tender of 360-day
agro bills to finance the 2011/2012 agricultural season was undersubscribed,
raising $17,7 million out of the required $50 million.
The reluctance by players, particularly financial institutions, appears to
be a result of a cautious approach which the companies adopted after the GMB
defaulted on a similar scheme in 2004.