GMB pays wheat farmers US$13m

Edgar Vhera

Agriculture Specialist Writer

THE Grain Marketing Board (GMB) has so far paid US$13 million to farmers for the 2024 wheat while an additional ZiG$115 million is being processed to ensure farmers embark on the 2024/25 summer production.

This was disclosed by GMB chief executive officer, Dr Edson Badarai yesterday.

“GMB received US$13 million and ZiG115 million from Treasury for farmer payments.

While all the United States dollar payments of US$13 million have been done and likely to hit the farmer accounts by now, the ZiG115 million is being processed,” he said.

In a media release in September, the GMB said standard wheat will be bought at US$450 per tonne with premium at US$470 and farmers will be paid 100 percent of their money in foreign currency.

“GMB will purchase all wheat financed under the Presidential Input Programme (PIP), and also from self-financed growers, wherein self-financed farmers will sell to the best advantage. In addition, GMB remains the buyer of the last resort and is working with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipts services to all players. Contractors will buy back contracted wheat at market price,” said the notice.

Zimbabwe National Farmers’ Union (ZNFU) president, Mrs Monica Chinamasa yesterday said some of the farmers who had delivered their crop to GMB had not yet been paid.

“We sold our crop to GMB and to date have not been paid. We need the money to pay our debts to service providers such as combine harvesters hiring, electricity, water, truck hire, among other expenses,” she said.

She lamented the monthly interest rates that were being levied on farmers by some service providers due to non-payment.

“We do not know the final wheat output price and payment modalities as earlier engagements between GMB and industry suggested splitting payments.

“Deliberations on payments centred on having half of the money paid in hard currency and the other in ZiG, but we have no feedback from industry as of now,” Mrs Chinamasa explained.

Food Crop Contractors Association (FCCA) chairperson Mr Graeme Murdoch concurred that some payments had been effected late last week.

“I believe that GMB were substantially funded by Treasury to make wheat payments late last week and payments to farmers and contractors are expected this week.

“Although most of the private sector funded wheat has been harvested, deliveries from farm storage are on-going,” he said.

Mr Murdoch said some of their members sold to the GMB, for various reasons including that they were funded by the AFC or were delivering wheat to offset water bills owed to Zimbabwe National Water Authority (ZINWA) or electricity bills payable to the Zimbabwe Electricity Distribution Company (ZETDC) via stop orders.

As of November 1, the country had harvested a record 518 502 tonnes of wheat from 106 238 hectares as the winter wheat harvesting process tails off.

The country is targeting over 600 000 tonnes of wheat after record cultivation on 121 982 hectares.