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Grain millers sue government over controversial import levies

by Staff Reporter
2 hrs ago | 60 Views
The Grain Millers Association of Zimbabwe (GMAZ) has approached the High Court's Commercial Court Division seeking an order declaring Statutory Instrument 87 of 2025 unconstitutional and invalid, arguing that the import levies imposed on grain and oilseed products are unlawful and threaten national food security.

In papers filed at the High Court in Harare under case number HCH/26, GMAZ cited the Agricultural Marketing Authority (AMA), the Ministers of Agriculture, Justice, Finance and Industry and Commerce, the Zimbabwe Revenue Authority (ZIMRA), the Zimbabwe National Statistics Agency (ZimStat) and the Attorney‑General as respondents.

The application was deposed to by GMAZ national chairman Tafadzwa Musarara, who said the association represents more than 100 milling and stockfeed companies with a combined annual turnover of about US$1.2 billion.

According to the court papers, GMAZ members collectively produce about 950,000 metric tonnes of maize meal, 440,000 metric tonnes of flour, 300,000 metric tonnes of rice, 156,000 metric tonnes of salt and approximately one million metric tonnes of stockfeed annually.

GMAZ argued that the regulations introduced under SI 87 of 2025 on 5 September 2025 imposed restrictive conditions on the importation of grain, oilseed and related products. The statutory instrument introduced levies including US$89.25 per metric tonne on imported soft wheat, US$89.25 per metric tonne on imported hard wheat after exhausting a 30% monthly quota, US$40 per metric tonne on imported maize, US$20 per metric tonne on imported soya beans and US$35 per metric tonne on soya meal.

The association said processors are now required to source at least 40% of their annual grain and oilseed requirements locally from 1 April 2026, rising to 100% by 1 April 2028.

GMAZ argued that the statutory instrument was promulgated without the consultations required under Section 39 of the Agricultural Marketing Authority Act and exceeded the powers granted under the parent legislation. It said Section 37 of the Act only permits levies on agricultural products produced in Zimbabwe, not on imports.

The association also challenged the creation of an "Agricultural Revolving Fund" under the statutory instrument, arguing that no such fund exists under the enabling Act or any Act of Parliament. It further argued that the regulations violate Section 134 of the Constitution, which requires statutory instruments to remain consistent with the enabling Act.

GMAZ warned that the levies would increase the prices of staple foods and basic commodities. It estimated that the price of a 10kg bag of roller meal could rise from US$4.60 to around US$5.20, while a 50kg bag of baker's flour could increase from US$36 to US$41. Bread prices could rise above US$1 per loaf, while stockfeed prices could increase by 18%, with knock‑on effects on meat and milk prices.

According to the application, GMAZ members engaged government and AMA officials after the statutory instrument was gazetted and attended an industry conference convened by AMA in January 2026 to discuss the regulations. The meeting reportedly resolved that SI 87 of 2025 would either be aligned with the Constitution and parent Act or repealed by 30 March 2026.

However, GMAZ said its members later discovered that import permits for soft wheat were being withheld until the new levies had been paid upfront. The association accused authorities of demanding levy payments before permits were issued, describing the arrangement as prejudicial to importers and potentially anti‑competitive.

GMAZ said some members had already paid the levies under protest to avoid disruptions to grain imports and national food supplies.

The association is seeking a declaration that SI 87 of 2025 is unconstitutional, ultra vires the Agricultural Marketing Authority Act and invalid. It also wants the court to nullify the regulations and grant consequential relief regarding levies already collected.

The matter is yet to be heard.

Source - Byo24News
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