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Fumvudza/ intwasa input scheme in disarray over US$300 million debt to suppliers
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A government initiative aimed at providing free access to seed and fertilizer for communal farmers is encountering significant obstacles, as it has been revealed that the state owes suppliers more than US$300 million. This program, known as the-Fumvudza/Intwasa scheme, is designed to support farmers by distributing essential agricultural inputs at no cost.
During a session with Parliament's Public Accounts Committee on Monday, Obert Jiri, secretary in the Ministry of Lands, disclosed that the government has failed to make payments to seed and fertilizer companies for the past three years. He named key suppliers, including FSG Fertilizer, ZFC Fertilizer, and Quton Seed, as being owed substantial amounts for the 2020/2021, 2021/2022, and 2022/2023 farming seasons.
"The main challenge is certainly the financing of this programme. Our contractors are owed in excess of US$300 million, which delays the movement of inputs. If we don't pay, they cannot move the inputs," Jiri stated. He emphasized the urgency of resolving the financial issues as the cropping season is underway, with only half of the required seed and fertilizer currently available for distribution.
Jiri expressed hope that if funding is secured promptly, the government could complete the movement of fertilizer by mid-November. He anticipated that maize seed deliveries to various districts might still be possible by the end of the first week of November. However, he cautioned that the ongoing cash crunch could impact the availability of traditional grains, some of which would need to be imported.
The government aims to supply seed and fertilizer to approximately 3.5 million households under the scheme this year, a vital effort given the challenges faced during the 2023/24 farming season, which was marred by limited rainfall that adversely affected agricultural production. While normal rainfall is expected this cropping season, any delays in providing farmers with the necessary inputs could further jeopardize production and exacerbate the country's food insecurity.
As the situation unfolds, stakeholders in Zimbabwe's agricultural sector are closely monitoring developments related to the financing and implementation of the Fumvudza/Intwasa scheme, with many calling for urgent action to ensure that farmers receive the support they need to maximize yields in the upcoming season.
During a session with Parliament's Public Accounts Committee on Monday, Obert Jiri, secretary in the Ministry of Lands, disclosed that the government has failed to make payments to seed and fertilizer companies for the past three years. He named key suppliers, including FSG Fertilizer, ZFC Fertilizer, and Quton Seed, as being owed substantial amounts for the 2020/2021, 2021/2022, and 2022/2023 farming seasons.
"The main challenge is certainly the financing of this programme. Our contractors are owed in excess of US$300 million, which delays the movement of inputs. If we don't pay, they cannot move the inputs," Jiri stated. He emphasized the urgency of resolving the financial issues as the cropping season is underway, with only half of the required seed and fertilizer currently available for distribution.
Jiri expressed hope that if funding is secured promptly, the government could complete the movement of fertilizer by mid-November. He anticipated that maize seed deliveries to various districts might still be possible by the end of the first week of November. However, he cautioned that the ongoing cash crunch could impact the availability of traditional grains, some of which would need to be imported.
The government aims to supply seed and fertilizer to approximately 3.5 million households under the scheme this year, a vital effort given the challenges faced during the 2023/24 farming season, which was marred by limited rainfall that adversely affected agricultural production. While normal rainfall is expected this cropping season, any delays in providing farmers with the necessary inputs could further jeopardize production and exacerbate the country's food insecurity.
As the situation unfolds, stakeholders in Zimbabwe's agricultural sector are closely monitoring developments related to the financing and implementation of the Fumvudza/Intwasa scheme, with many calling for urgent action to ensure that farmers receive the support they need to maximize yields in the upcoming season.
Source - zimlive
