Marketing of grain liberalised as banks CBZ and AFC roped in – NewZimbabwe.com

By Alois Vinga

THE government has liberalised the marketing of grain by bringing on board the CBZ Bank and AFC Bank as the first private players allowed to purchase directly from farmers.

The latest development announced by the Cabinet this week is expected to ease the burden of processing payments from every farmer.

“The nation is being informed that the Second Republic has liberalised the marketing of grain and allowed CBZ Bank, AFC Bank as well as private financiers to purchase directly from farmers the grain which they contracted to those farmers,” said the cabinet.

Under the arrangement, the Grain Marketing Board will purchase the grain from farmers who received government support, and from those who financed their own farming operations.

Farmers were being assured that payments for grain deliveries will be processed as soon as possible in order to facilitate preparations for their next operations.

Cabinet also revealed that current grain stocks held by the GMB comprise 220 000 metric tonnes of maize, 40 000 metric tonnes of traditional grains, and 160 000 metric tonnes of wheat.

Millers and stock feed manufacturers are being allocated 27 000 metric tonnes of maize and up to 7 000 metric tonnes of sorghum per month excluding private sector stocks  amid revelations that the nation is food secure until the next harvest.

Market watchers however, believe that if the modalities are properly implemented, farmers may be motivated to dispose of their grain through formal channels as opposed to resorting to black market sales in a development which may see the nation building adequate stocks.

However, some expressed fears that if improperly implemented, the measures may result in higher grain prices prompted by the pursuit of proper market pricing likely to be pursued by the private players.