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Treasury has money to pay for grain

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Following a recent story by TechnoMag stating Reserve Bank of Zimbabwe Governor Dr John Mangudya says he no longer has to find the foreign currency to buy 100 000 tonnes of maize a month, but the even bigger benefit is that instead of paying foreign farmers for maize, we are now going to be pumping that money into the bank accounts of our own farmers, keeping it in Zimbabwe.The bumper maize harvest now being harvested and delivered will be saving Zimbabwe US$300 million in imports over the next year, and there will be enough carry-over stocks to keep millers supplied while the next harvest is reaped, dried and delivered.

Treasury has mobilised resources to buy grain from farmers and has set up a procurement committee bringing together Government and the private sector to ensure that Zimbabwe benefits from the bumper harvest expected this season, Finance and Economic Development Minister Mthuli Ncube told the National Assembly on Wednesday during the Question and Answer session.

Legislators wanted to know if Government had mobilised enough resources to buy grain.

“We have set up a grain procurement committee comprising my Ministry and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement. We have also included the private sector like millers. 

“We meet every week. The grain purchase programme has started. We have an outlay of over $2 billion and it is going on well,” said Prof Ncube.

Millers were also buying grain under an agreed system, but will do so through the Grain Marketing Board to avoid any possibility of side-marketing.

Turning to tobacco, Prof Ncube said he will investigate why there has been a delay in settling payments after farmers delivered their crop. 

“Complaints have been raised that tobacco farmers, mostly women, were sleeping at auction floors for two weeks waiting for their money.

“Tobacco farmers are our special farmers. I am unhappy that payment is taking long, like two weeks. It was brought to my attention and we are looking at it. I will engage the central bank to resolve this problem,” he said.

Prof Ncube said he will soon tour tobacco auction floors to have an appreciation of the challenges and try to comprehensively address them.

He said what ought to be established was whether the problem was with banks, buying firms, or something else.

Cotton farmers were assured that Government will clear the $1,5 billion that remains outstanding from the previous cropping season.

Ross Moyo

Revisiting Special Drawing Rights (SDR’s)

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