Business / Economy
Commodity exchange on the cards
14 Mar 2013 at 08:39hrs | Views
The country's fiscal authorities say they are finalising the setting up of the Commodities Exchange of Zimbabwe, which is expected to assist in the mobilisation of financial resources and ensuring price transparency.
The commodities exchange is anticipated to ensure efficiency in the marketing of the country's agricultural products by eliminating delayed payments to farmers.
Finance Minister Tendai Biti stressed the urgent need to ensure the operationalisation of the exchange which he said is critical in bringing about discipline in the market and a competitive price regime for the agricultural products.
"Our hope is that the exchange will be operational during the forthcoming harvesting season. We need to ensure that there are market driven prices for the agricultural products and do away with the Grain Marketing Board (GMB) monopoly," said Minister Biti.
The GMB has been the major buyer of maize as well as wheat and a price setter.
Due to capital constraints, the entity has been struggling to ensure timeous payment for the delivered grains.
Observers say the setting up of a commodities exchange will assist in mobilising financial resources which is fundamental in funding agricultural products and eliminate monopolies enjoyed by various entities in marketing and purchase of agricultural products.
The commodities exchange is anticipated to ensure efficiency in the marketing of the country's agricultural products by eliminating delayed payments to farmers.
Finance Minister Tendai Biti stressed the urgent need to ensure the operationalisation of the exchange which he said is critical in bringing about discipline in the market and a competitive price regime for the agricultural products.
"Our hope is that the exchange will be operational during the forthcoming harvesting season. We need to ensure that there are market driven prices for the agricultural products and do away with the Grain Marketing Board (GMB) monopoly," said Minister Biti.
The GMB has been the major buyer of maize as well as wheat and a price setter.
Due to capital constraints, the entity has been struggling to ensure timeous payment for the delivered grains.
Observers say the setting up of a commodities exchange will assist in mobilising financial resources which is fundamental in funding agricultural products and eliminate monopolies enjoyed by various entities in marketing and purchase of agricultural products.
Source - zbc
