ZIMBABWE – Wheat farmers across Zimbabwe have commended the Government’s decision to buy this year’s crop in foreign currency.
The Grain Marketing Board (GMB) recently announced that it would purchase standard-grade wheat at US$450 per tonne, with premium-class wheat fetching US$470 per tonne.
Farmers will receive 100 percent of their payments in foreign currency, a move commended by key stakeholders in the agricultural sector.
The decision comes as a relief to farmers, who have faced rising production costs due to inflation, fluctuating exchange rates, and the increased prices of inputs like fertilisers and fuel.
Mrs Monica Chinamasa, the Zimbabwe National Farmers’ Union (ZNFU) President, praised the payment method, stating, “The decision to pay in United States dollars is icing on the cake. We can’t wait to deliver the wheat.” Chinamasa also noted that the price aligns with farmers’ expectations, especially as they gear up for the harvest.
Similarly, Zimbabwe Commercial Farmers’ Union (ZCFU) President, Dr Shadreck Makombe, remarked that the price was particularly favorable for farmers who could yield more than five tonnes per hectare.
“The pricing is fair, and the 100 percent foreign currency payment will enable farmers to retool and prepare for the next season,” said Dr Makombe.
In addition to these efforts, the Government has allowed farmers to import fertilisers directly from international suppliers, further reducing input costs.
“By securing fertilisers from the same suppliers as South African farmers, Zimbabwean wheat producers have been able to lower their production costs,”
Mr Graeme Murdoch, Chairperson of the Food Crop Contractors Association (FCCA), pointed out that the pricing structure acknowledged the increased costs of wheat production.
He emphasized that growers would greatly appreciate the foreign currency payment method, which would allow them to remain competitive.
The GMB also announced that it will work with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipt services for all players in the wheat supply chain.
Contractors will purchase wheat at market prices, while the GMB will serve as the buyer of last resort, ensuring that self-financed farmers have flexibility in selling their produce.
The strategic partnership between the GMB and ZMX aims to enhance the transparency and efficiency of wheat trading in Zimbabwe.
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