Cabinet has approved the upward adjustment of producer price for maize which will now be paid at the prevailing foreign currency interbank rate.The announced was made by Information Minister Monica Mutsvangwa at a post cabinet press briefing in Harare yesterday.
“Cabinet also considered and approved that the GMB maize producer prize of USD$242 per metric tonne be payable into RTGS dollars at the prevailing foreign currency interbank exchange rate.”
“In this case therefore the maize producer floor price has been reviewed upwards from the current RTGS$726 to RTGS$1400 per metric tonne based on the interbank market rate of US$1:5.5.” said Minister Mutsvangwa.
The upward adjustment is expected to come as a huge sigh of relief for farmers as long as the the market does not react to such a change in a negative way.
Cabinet moved in to allay fears of maize meal price hikes which may be effected by the business people due to the adjustment of the producer price.
“The review of the maize producer price does not translate into an upward adjustment in the prize of mealie meal since the GMB will continue to sell to millers at the government subsidized rate.”
“Cabinet is appealing to business people not to increase prices as the GMB buying price has no impact on the selling price of mealie meal.”added Minister Mutsvangwa.
Acting Minister of Agriculture Oppah Muchinguri responded to a question on timeous payment of farmers which has been a headache for GMB for years.
“We were owing farmers from previous submissions and i was briefed by the GMB officials that they have since paid all the farmers.” said Minister Muchinguri.
Government is also expected to make such adjustments on other crops such as tobacco and cotton.