Business Reporter
ACCESS to cash for local maize and soya purchases and outstanding foreign payments for grain imports are some of the topical issues set to feature this morning at the Reserve Bank of Zimbabwe and grain millers’ engagement to assess preparedness for the forthcoming summer season. The meeting has been called as millers prepare to mop up maize and soya beans from farmers.In a circular to members the Grain Millers Association of Zimbabwe, the umbrella body for millers said central bank governor Dr John Mangudya had confirmed meeting the food processors to be held this morning.
GMAZ said the agenda, generated from submissions received from members, includes access to cash withdrawals for maize and soya purchases, outstanding foreign payments for maize, wheat, rice and soya beans imports. The meeting will also deliberate on future TT payments regime.
There have been suggestions in the market that in light of the TT delays and the need to prioritise grain imports in a coordinated manner, the RBZ may just appoint a single bank to handle grain TT payments.
GMAZ members expect to import over 120 000 tonnes of grain every month and delays in processing TT payments could affect their operations.
Timely release of cash could also help to improve viability of fertiliser companies.
Millers are expected to lobby the apex bank chief for access to cash to pay farmers on the spot. Most farmers are in the rural areas and commuting to nearest towns to withdraw cash could be a challenge for most of them.
In the same vein, the millers, who plan to buy over 250 000 tonnes of maize, say that prompt payments to farmers could help them prepare for the forthcoming summer season.
Farmers are supportive of the lobby for cash payments with the Zimbabwe Commercial Farmers Union saying the measure could dissuade unscrupulous buyers who are offering low prices for cash purchases of grain.
“It’s a good move. Farmers should be paid promptly to enable them time for servicing equipment, land preparations, procurement of inputs, repairs and maintenance ahead of the summer season.
‘‘This is the time to do that and cash payments will go a long way to assist the farmers. Currently it is difficult for farmers to access cash,” ZCFU president Mr Wonder Chabikwa said in an interview.
“Failure to access cash exposes farmers to unscrupulous dealers who will use cash to entice farmers to sell at very low prices,” he said.
Some farmers are holding on to their crop waiting for buyers with cash and this is delaying preparations for the coming summer season.
More importantly, the Meteorological Department has forecast the summer season to be better than last season in terms of rainfall but if farmers do not have access to cash to prepare then the country may not be able to take advantage of the expected good rains.
Also, low prices impinge on farmers’ capacity to prepare for the new season and this will in turn affect productivity.
“We are the first line in the production process and for us to produce enough raw materials for value addition we should be prioritised. For the Buy Zimbabwe campaign to work, we need to capacitate the producers of raw materials, the farmers,’ said Mr Chabikwa.
Millers are offering prices around $340 per tonne delivered Harare. Some unscrupulous dealers are reducing prices to as low as $290 per tonne because they are buying cash.