Business / Economy
Zim govt disburses $500k (USD) for commodity exchange establishment
04 Aug 2013 at 21:19hrs | Views
THE Government has disbursed $500 000 for the establishment of an Agriculture Commodity Exchange.
Announcing the 2013 mid-term budget statement recently, Finance Minister Tendai Biti said the commodity exchange was anticipated to be operational during the next grain marketing season.
The Agriculture Commodity Exchange would among others bring about market discipline, eliminate delayed payment to farmers as well as ensuring a competitive price regime for agricultural produce.
"In this regard, an amount of $500 000 has been disbursed towards the establishment of the commodity exchange," he said.
Farmers have expressed concerns over late payment and low producer price for crops such as maize and cotton.
Meanwhile, the Zimbabwe Farmers' Union (ZFU) has said the recently announced Grain Marketing Board (GMB) buying price of $378,86 per tonne of maize for the 2013/14 marketing season remains unattractive and below the farmers' expectations.
The farmers' union said it was lobbying for a minimum of $400 per tonne although this amount was still below the regional average price of about $460.
Prior to the announcement of the new producer price, a tonne of maize was pegged at $295 and GMB had been paying an interim price of $310 per tonne for deliveries to its depots.
"With the recently announced price, farmers will be lured to more lucrative crops such as tobacco which fetch higher prices and usually offer instant payments and we are concerned this can lead to a threat to food security," ZFU second vice president Mr Berean Mukwende in an interview with our Harare Bureau.
Due to reduced output levels, the Government has this year started importing grain from Zambia.
Arrangements have been made to import 150 000 tonnes of maize from that neighbouring country at a cost of $70,6 million.
The Second Round Crop and Livestock Assessment Report indicates that 798 600 tonnes of maize will be realised in 2013, down from an initial projection of 1 100 000 tonnes.
The country has a national demand of 2,2 million tonnes of maize per year.
Announcing the 2013 mid-term budget statement recently, Finance Minister Tendai Biti said the commodity exchange was anticipated to be operational during the next grain marketing season.
The Agriculture Commodity Exchange would among others bring about market discipline, eliminate delayed payment to farmers as well as ensuring a competitive price regime for agricultural produce.
"In this regard, an amount of $500 000 has been disbursed towards the establishment of the commodity exchange," he said.
Farmers have expressed concerns over late payment and low producer price for crops such as maize and cotton.
Meanwhile, the Zimbabwe Farmers' Union (ZFU) has said the recently announced Grain Marketing Board (GMB) buying price of $378,86 per tonne of maize for the 2013/14 marketing season remains unattractive and below the farmers' expectations.
Prior to the announcement of the new producer price, a tonne of maize was pegged at $295 and GMB had been paying an interim price of $310 per tonne for deliveries to its depots.
"With the recently announced price, farmers will be lured to more lucrative crops such as tobacco which fetch higher prices and usually offer instant payments and we are concerned this can lead to a threat to food security," ZFU second vice president Mr Berean Mukwende in an interview with our Harare Bureau.
Due to reduced output levels, the Government has this year started importing grain from Zambia.
Arrangements have been made to import 150 000 tonnes of maize from that neighbouring country at a cost of $70,6 million.
The Second Round Crop and Livestock Assessment Report indicates that 798 600 tonnes of maize will be realised in 2013, down from an initial projection of 1 100 000 tonnes.
The country has a national demand of 2,2 million tonnes of maize per year.
Source - Chronicle
