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"GMB Monopoly Killing Market For Small-holder Farmers"

Economic commentators say the Grain Marketing Board (GMB)’s monopoly on the marketing of maize is killing the market, especially small-holder farmers.

Agricultural economist Mandivamba Rukuni said that the Government should offer farmers 50% part payment for grain in US dollars.

The Government has offered to pay farmers 30% in US dollars and 70% in Zimbabwe dollars for delivered grain. Said Rukuni:

I think the issue has been about pricing. I hope government will review the prices to 50% payment in forex because it would cost the country US dollars anyway to import grain. It’s a win-win situation for both and government and farmers.

Another economic commentator, Victor Bhoroma said the price of all agricultural products should be determined by market forces. He said:

Well, the challenge we have with the GMB monopoly on maize is that it kills market access for small-holder farmers, dents viability, creates inefficiencies in the economy and leads to rent-seeking behaviour by those with access to GMB or authorities.

Pricing for any agriculture commodity needs to be set by growers or be determined in an open market such as the commodity exchange.

Anything else will lead to a decline in production and food insecurity. GMB cannot set a competitive price, and pay for the grain on time and efficiently.

History will tell you. Millers cannot operate through buying from GMB as long as the price is above market price.

Last week, the Government resolved to use soldiers and police to seize grain from farmers to prevent the side-marketing of grains.

More: NewsDay


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17 Comments

Miles 3 weeks ago

Farmers will reduce maize production this coming season because they cannot get a good return on their investment.


Asalif 3 weeks ago

that will happen as they did at cotton and tobacco

Master 3 weeks ago

security forces to stabile exchange rate??? that's command economics bveni iwe


Machiavelli 3 weeks ago

#Master that was said tongue in cheek.
ZANU is always militarising everything.
AND that does not work

Asalif 4 weeks ago

the first thing they should have done is deploying the the security forces to stabilize the exchange rate, secure and manage the economy


dispenser 4 weeks ago

why and what cld be e reason bcz 99percent of population is discontent with this gvt .This evil gvt is not worth respecting at all .All e farmers have to sell their products where they are at liberty doing so not to be forced .This will result to a scenario of 2008.


@💙 4 weeks ago

If they force close pindula we'll resort to what's app groups @blue


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Zuze 4 weeks ago

Pindula Comments Section sando dzenyu 🔨🔨🔨.

And ⭐⭐⭐⭐⭐ for value, education& entertainment


Jah🇿🇼Tsvarie-07 4 weeks ago

Paying our farmers in forex will cut transport costs, the problem we have in this country is that its the big guys who own logistics companies and that will make them want to import maize for their truck companies to benefit 😀
in my ZIMBABWE IT IS THE SAME FIRE THAT MELTS BUTTER AND HARDEN AN EGG...


Machiavelli 4 weeks ago

Professor Mandi Rukuni (formerly Dean, Agricultural Sciences UZ & latterly Country Director, Ford Foundation, Malawi, inter alia), is being very polite by advocating for 50% payment in US$. As an Agricultural Economist, (and my mentor to boot), he should have castigated the government for offering us economic purchase prices to farmers. US$180/ton for maize is uneconomic and certainly not viable. What he should have advocated for, and which I do, would be to request government to offer import parity prices (currently US$310/ton).

My own calculations show that production costs for maize this last season was between US$270-280/ton. A gross margin of US$30/ ton would be a reasonable incentive for farmers to grow maize.


Sekuru waBona 4 weeks ago

Machiavelli yes the learned doc is soft packaging the issue lest he be called a regime change agent

Sekuru waBona 4 weeks ago

panosvika Dec pindula app inenge isisaite yavharwa


sekuru waBona 4 weeks ago

nhaiwe to criticize chiri wrong is it wrong

chirikuitwa chaicho chaungati chabuda kubva 1980 chatingaridzira mabhosvo chii

vanhu ava vaitonga kubva 1980 vose hapana kana new face saka chitsva chii

taura zvinhu ten zvaitwa kuvandudza nyika ino

vanhu vose vapararira pasi rose kutsvaga kuraramisa mhuri wonzi ukazvitaura uri unpatriotic

Blue 💙 4 weeks ago

Ehe because it peddles anti-government propaganda. It incites violence. It won't go far on this course

ppp 4 weeks ago

Dai mangotenga neForex nekuti muchachi importer ne forex


Dr Herc 4 weeks ago

No forex for local farmers its only for farmers frm neighbouring countries.

mumunangarwaa 4 weeks ago

Hapana zvandingaitewo ndaremerwa



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