Cabinet yesterday approved an incentive planning price of US$440 per tonne for wheat and US$360 for maize and sorghum, with the Government assuring farmers of timeous payments for deliveries, as the Second Republic steps up efforts to prevent an El Nino-induced food deficit.
Speaking at a post-Cabinet media briefing in Harare yesterday, the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, said there will be increased hectarage for wheat this winter while a viable producer price has been set to ensure farmers commit themselves to guaranteeing food security for the country.
He said the measures were contained in a report presented by Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka which Cabinet adopted.
"Cabinet also approved an incentive planning price of US$440 per tonne for wheat and a planning price of US$360 per tonne for maize/sorghum.
"These viable producer prices should incentivise farmers to commit more land to wheat production. Government encourages all farmers with available irrigation and land to contribute to national efforts to produce a bumper wheat crop as part of the national strategy to ensure food security," said Dr Muswere.
He said Cabinet also adopted a proposed 2024 winter cereals production plan.
"Zimbabwe has comparative advantage producing wheat rather than maize or sorghum in winter. Accordingly, a total of 120 000 hectares have been targeted for wheat production during the 2024 winter cereal production season, compared to the 90 912 hectares planted in 2023.
"The total production is estimated as 624 000 tonnes, against a national requirement of 360 000 tonnes annually. The hectarage will be financed through banks; the Presidential Input Scheme; ARDA (Estates plus Joint Ventures); the Food Crop Contractors Association (FCCA); and self-financing," said Dr Muswere.
"Farmers are being advised that the country has enough wheat seed and chemicals, some fertilisers and chemicals in stock for the 2024 winter cereals production season. The deficit in fertiliser requirements has to be met through imports. There is enough water in the country's dams for the winter cereals production programme. In terms of mechanisation, there is enough capacity to adequately and timeously till the 120 000 hectares."
The new incentive price structure is expected to excite farmers as it will go a long way in encouraging them to plant the cereals this winter.
However, farmers have in the past complained about delays in their payments thereby compromising the value of their earnings, particularly the Zimbabwe dollar component.
Responding to inquiries on the delays in payment, Dr Masuka said Government, through both fiscal and monetary authorities, is expected to unveil new macro economic stability measures aimed at preserving value of the Zimbabwean dollar.
He said Government had stepped up outstanding payments of grain delivered and Zesa will ring-fence electricity to farmers to allow uninterrupted supply of power.
"Yes, the Government apologises profusely for the delay, this has been occasioned by the delay by the Ministry of Finance, Economic Development and Investment Promption, who
are the buyers of the Strategic Grain Reserve. When we get this money we pass on immediately to the Grain Marketing Board to pay farmers. As of yesterday, all the maize and traditional grain delivered to GMB had been fully paid for by the Government, both the US dollar and Zimbabwe dollar components," said Dr Masuka.
"All the Zimbabwe dollar payment for wheat has been fully met. Some component of the US dollar outstanding payment has been paid. What has been outstanding as of yesterday is US$$34,9 million and Government is committed to pay this outstanding amount before end of April 2024. Government profusely apologises for the delay, we will ensure that this will not recur. Farmers must draw confidence from these measures we are taking and that we will be able to pay timeously."
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
On exchange rate volatility, Dr Masuka said Government had adopted a deliberate strategy to pay timeously the Zimbabwe dollar component and the amounts would be indexed to the prevailing exchange rate of the day and not on the day the crop was delivered.
He said Government was still assessing food requirements for those that would be affected by the effects of the subdued rainfall this season.
Dr Masuka said he was not aware of reports from some entities who were claiming that more than 5,4 million people would need food aid given that Government was still making assessments.
