News / Press Release
Govt injects US$20M for winter wheat farming - Min Biti
10 Apr 2012 at 12:02hrs | Views
Finance Minister, Tendai Biti has said the government has set aside US$20 million to support the 2012 winter wheat programme.
The money will finance the targeted 26 280 hectare winter wheat.
Addressing a joint press conference at his offices with the Minister of Agriculture, Mechanisation and Irrigation Development, Joseph Made, Minister Biti said the targeted hectarage with a projected output of 75 000 tonnes is against the 14 100 hectarage that was planted last year, which produced an output of 41 000 tonnes.
"The programme is to be financed as follows; use of carryover agriculture inputs deliveries from running contracts valued at US$15million. To this end, the government will facilitate the full supply of inputs by the suppliers under the running contracts through the payment of outstanding obligations to the same," Minister Biti said.
He said inputs for the winter wheat production will be accessed at a cost price under a credit arrangement.
"However, in order to lessen the burden on the farmers, the credit facility shall be at concessionary rate of below three percent per annum," said Biti.
This credit facility will go a long way to stop some unscrupulous farmers from trading their fertiliser at a higher market on the black market.
The Commercial Bank of Zimbabwe (CBZ) is handling the loan facility while the Grain Marketing Board (GMB) will manage the distribution of the inputs.
"As part of measures to ensure food security in the country, government has continued to support farmers with inputs to allow them establish themselves as well as increase agricultural productivity and output. In order to ensure sustainability in the financing sector it is critical for government to institute market based support mechanisms. In this regard, all future agriculture financing strategies will be on cost recovery basis with a view to establishing a revolving Fund in line with the Three Year Roling Financing Strategy proposed through the 2012 Budget Statement," said Biti.
Minister Biti said it was critical for the Ministry of Energy and Power Development and Zimbabwe Electricity Supply Authority (ZESA) to make necessary arrangements to ensure adequate supply of power to wheat growing areas.
"Failure to do this will result in undesirable performance of the programme and losses to our farmers. The government is eager to assist the farmers but they must assist the government by performing," he said.
Meanwhile, Minister Biti has said the government is mobilising resources to mitigate this year drought situation which was caused by a low rainfall.
Of the planted 1, 7 million maize crop this season, nearly 600 000 has been affected by the drought.
The money will finance the targeted 26 280 hectare winter wheat.
Addressing a joint press conference at his offices with the Minister of Agriculture, Mechanisation and Irrigation Development, Joseph Made, Minister Biti said the targeted hectarage with a projected output of 75 000 tonnes is against the 14 100 hectarage that was planted last year, which produced an output of 41 000 tonnes.
"The programme is to be financed as follows; use of carryover agriculture inputs deliveries from running contracts valued at US$15million. To this end, the government will facilitate the full supply of inputs by the suppliers under the running contracts through the payment of outstanding obligations to the same," Minister Biti said.
He said inputs for the winter wheat production will be accessed at a cost price under a credit arrangement.
"However, in order to lessen the burden on the farmers, the credit facility shall be at concessionary rate of below three percent per annum," said Biti.
The Commercial Bank of Zimbabwe (CBZ) is handling the loan facility while the Grain Marketing Board (GMB) will manage the distribution of the inputs.
"As part of measures to ensure food security in the country, government has continued to support farmers with inputs to allow them establish themselves as well as increase agricultural productivity and output. In order to ensure sustainability in the financing sector it is critical for government to institute market based support mechanisms. In this regard, all future agriculture financing strategies will be on cost recovery basis with a view to establishing a revolving Fund in line with the Three Year Roling Financing Strategy proposed through the 2012 Budget Statement," said Biti.
Minister Biti said it was critical for the Ministry of Energy and Power Development and Zimbabwe Electricity Supply Authority (ZESA) to make necessary arrangements to ensure adequate supply of power to wheat growing areas.
"Failure to do this will result in undesirable performance of the programme and losses to our farmers. The government is eager to assist the farmers but they must assist the government by performing," he said.
Meanwhile, Minister Biti has said the government is mobilising resources to mitigate this year drought situation which was caused by a low rainfall.
Of the planted 1, 7 million maize crop this season, nearly 600 000 has been affected by the drought.
Source - MDC-T
