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Grain Farmers To Get 30% Of Payments In US Dollars

Grain Farmers To Get 30% Of Payments In US Dollars

The Government has announced that farmers who deliver grain to the Grain Marketing Board (GMB) will get 30 per cent of their proceeds in US dollars and 70 per cent in Zimbabwe dollars.

In a statement, Finance and Economic Development Minister Mthuli Ncube said the US dollar payment will be calculated at the prevailing willing buyer willing seller rate. Said Ncube:

In the quest to incentivise farmers and encourage early deliveries of maize and other grains to the Grain Marketing Board, the government has taken the decision to pay the maize farmers 30% of the amount due on grain delivered in United States Dollars and 70% in domestic Zimbabwe dollars.

The US Dollar payment will be calculated at the prevailing willing buyer willing seller rate published by the Reserve Bank of Zimbabwe on the date of delivery.

The payments will be backdated to the date of the first deliveries of this season’s maize to GMB.

Recently, the Government increased the producer price for maize and traditional grains to ZWL$75 000 per tonne.

Previously, the floor producer price of maize was ZWL$58 553 while that of traditional grains was ZWL$70 263.90.

Ncube also said the Government has resolved to reduce import tariffs on basic commodities to enable citizens to access affordable basic commodities from other countries. He said:

To further ensure that citizens have access to affordable basic commodities, in the face of recent substantial price increases in the shops, the government hereby opens up imports of basic commodities by citizens, through the lowering of import tariffs and other accompanying measures. This is with immediate effect.

Those with free funds are, with immediate effect, permitted to make use of these funds and other resources to import basic commodities.

Meanwhile, responding to the new measures announced by Ncube, award-winning journalist and Government critic, Hopewell Chin’ono said the interventions are too little, too late. He tweeted:

Woke up to get some water and boom, there is another @MthuliNcube mid-night economic statement online.

Cornered with economic laws that can’t be rigged, the regime is now issuing economic statements at night to fix what should have been dealt with via reforms. The horse bolted!

On Saturday last week, President Emmerson Mnangagwa banned banking lending resulting in businesses suspending credit to their clients. RBZ Governor John Mangudya said the move is temporary.

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11 Comments

Nimrod 1 month ago

Mutuvi once said maize farmers will not be paid in us$ because he said their produce dies not earn the country forex. So apa zvaita sei manje? ngavavape the same terms as tobacco farmers because if fewer maize is delivered the country will end up importing using forex


Asalif 1 month ago

how can you talk about paying farmers in forex when have not yet paid them their 2019 -2020 season dues musadaro asi


???? 1 month ago

kusvikira rini tichingokushandirai,kupa hedu nguruwe chibage chachi zvinei,onozo ona mavitamenzi vakudya nyama yacho enough is enough matipfidzisa vanhu imi


INDEPENDENT ECONOMIC ANALYST 1 month ago

The splitting of proceeds from sell of grain between the two currencies - ZWD (70%) and USD (30%) - is crystal clear admission by Prof Nthuli Ncube that one of the currencies is worthless. I don't know which one !


chikiti.. musavengana 1 month ago

kurima korwadza uku if u cant pay for the grain in US $ just leave us alone we kn wat we will do with our grain .. musatimhanyira henyu tava vanhu vakuru


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zoo 1 month ago

varoyi kaa ava


Jembi 1 month ago

Farmers should reject this, they should be given real money for their produce. Ko why do these guys issue statements at night?


Advocate chareka 1 month ago

5 bags fertilizer D +4bags Top+25kg maize seed +labour from ploughing to harvest+transport=about 250usd (75000÷450)=160

Maths dzacho ma1 gvmnt yedu kaaa


Jonso from Tafara 1 month ago

@Advocate chareka, with regards to your analysis - sadly this farmer will realise a negative profit of UDS90 (160 proceeds from sales, less 250 production costs). Seriously !?

e.g john chibadura 1 month ago

MWOS economics

Tio4 1 month ago

Vodoo economics will not work. There us really no incentive to deliver to GMB . Simple cost-benefit analysis will tell you kutozvisiya zvekurima chibage chacho. Such policy inconsistent coming ftom gvt is worrisome to anyone who is serious about business. Policies being amended husiku, economics dzirikuvaremera. Zvakungoda Chamisa izvi


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