Zimbabwe’s President Emmerson Mnangagwa has ordered an upward adjustment of the producer price of grain to motivate farmers to increase production.
In his weekly column published in the state-run Sunday Mail newspaper, Mnangagwa said the undertaking to pay 30% of early grain deliveries including maize in U.S. dollars “is not adequate” to get farmers to grow crops in the next season. Mnangagwa wrote in the Harare-based weekly newspaper:
I am keenly aware that there have been significant price movements all around since we announced producer prices for the season,”
These price movements were partly related to the unstable exchange rate; they have made those producer prices announced earlier on non-viable to the farmer.
Zimbabwe which requires 2.2-million tons of maize for human and livestock consumption annually is expecting 1.56-million tons this season, down from a record 2.7-million tons in the 2020-2021 planting season.
The decline is attributed to poor rainfall.
Last week, the Grain Millers Association of Zimbabwe (GMAZ) said it had purchased 400 000 tonnes of maize from Malawi and Zambia worth US$100 million.
There are reports that some farmers were selling their grain elsewhere instead of the Grain Marketing Board (GMB) prompting the Ministry of Agriculture to authorise a search and seize operation.