Zimbabwe: Farmers Welcome New Maize Producer Price

Source from:  The Herald (Harare) November 2, 2006 11/06/2006

FARMERS have welcomed the new producer price of maize, saying the move would encourage them to raise production. The increase -- from $31 350 to $52 350 a tonne -- came when most farmers were contemplating turning to sugar beans and tobacco, which were awarded high bonuses. Zimbabwe Farmers' Union president Mr Silas Hungwe said the revised price was a breakthrough with the positive effect of motivating farmers to increase maize production. He said a price review was necessary considering that a lot of money was being used up in inputs and labour. "When Government continues to review the prices of crops, it is good for the farmers. "This is encouraging because the Government has done something despite the challenges," said Mr Hungwe. He said with enough inputs, Zimbabwe would easily regain its regional breadbasket status. Minister of Agriculture Cde Joseph Made announced on Tuesday that farmers who have so far delivered their maize, sorghum and millet would be entitled to an extra backdated payment of $21 000 a tonne. He said in effecting the new prices, Government had taken into consideration production costs that include labour, tillage and transport, among other factors. Grain Marketing Board acting chief executive officer Retired Colonel Samuel Muvuti said the Government would make funds available to disburse to farmers at the new price levels and to those entitled to backdated payments. "We are happy Government has seen it fit to pay more to farmers. We are encouraging farmers to grow more maize to feed the nation," he said. Rtd Col Muvuti said farmers should utilise more of their money in purchasing inputs for them to get better returns. Grains and Cereals Producers' Association chairman Mr Denford Chimbwanda said paying farmers more for their crop was welcome but backpay disadvantaged farmers in view of high inflation. "The money has already been eroded by inflation and in future farmers should be involved in the pricing. Backpay is not good; farmers can't buy even a bicycle or enough inputs because of inflation," said Mr Chimbwanda. He said it was expensive for Zimbabwe to import maize because of the prevailing economic challenges but that could be avoided by paying maize farmers adequately for their produce. The Parliamentary Portfolio Committee on Lands, Agriculture, Resettlement, Rural Resources and Water Development this week heard that some farmers were abandoning maize production to experiment with other cash crops such as tobacco and wheat that brought far much better returns. GMB has so far bought about 480 000 tonnes of maize from the 2005/2006 season out of a target of 500 000 tonnes. Last year, the country produced between 750 000 tonnes and one million tonnes against the national requirement of 1,8 million tonnes owing to drought. Enditem