The Government has announced a fixed maize delivery incentive of US$90 per tonne in a bid to motivate farmers to sell their crop early to the Grain Marketing Board (GMB).
The incentive was announced by the acting Information, Publicity and Broadcasting Services Minister Jenfan Muswere during a post-Cabinet briefing on Tuesday. He said:
The nation is also informed that Cabinet has approved a review of the price of maize to ensure farmers’ viability.
The current maize price to ZW$75 000/MT plus a fixed early delivery incentive of US$90/MT.
The early delivery incentive will be extended to other crops such as traditional grains, sunflower and soya bean, is payable to 31 July 2022, and applies to all deliveries made since the commencement of the marketing season.
Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka said the ZWL$75 000 a tonne paid for maize, sorghum, millet and rapoko, and the US$90 incentive adds up to the equivalent of US$350. Said Masuka:
If you look at the import parity price for maize and if you look at this price framework, this is a very lucrative arrangement for farmers.
It is giving them the equivalent of US$350 which is comparable if not better than anywhere else in the region.
Farmers should take advantage of this generous offer from Government.
According to the GMB website, soya bean farmers are paid $171 495 a tonne and sunflower farmers $205 794.52 a tonne.
Meanwhile, fertiliser will now be sold in foreign currency in an open market as some components are imported.
However, farmers who access fertiliser using the Government schemes will pay for the product in Zimbabwe dollars.