AGRICULTURE minister Anxious Masuka says due to high costs of inputs, the government’s grain prices are the best in the region.
Speaking in the National Assembly on Wednesday, Masuka said the government’s pricing policy on grains was suitable for Zimbabwean farmers.
“The costs incurred by farmers on the farm are in Zimbabwean dollars and in United States dollars and we think that the model that we have proffered is the best under the circumstances.
“We are talking about $75 000 per metric tonne which even if you use the exchange rate and then add the US$90, we will certainly be above US$300.
“Import parity pricing currently gives US$280 per metric tonne, which is not the price that the farmers in those jurisdictions are paid. It is the price of landing maize. The price of landing maize in Zimbabwe is not the cost that farmers are paid. So you need to subtract that and if you do so, you will find that Zambia is at US$180 and Malawi is at US$225.
“So Zimbabwean farmers are actually getting more than the other farmers in the region because of the cost plus pricing model, the micro economic environment is different and, therefore, our farmers need to be rewarded differently,” Masuka said.
He said the cost plus the model is more reflective of Zimbabwe’s specific circumstances as we import fertiliser and other inputs.
“The maize pricing policy is based on an agreed cost plus model which takes into account the fact that Zimbabwe is high production cost-based compared to other countries in the region, although we desire to eventually lower the cost of production,” Masuka said.
He was responding to Zanu PF MP Dought Ndiweni who demanded that the government must pay farmers the prices they were paying on imported maize.
“We appreciate the government’s move in offering an incentive of US$90 per tonne which was effected two days ago, it would be supportive to our farmers to pay the price that we are paying to import maize and pay it to our local farmers so that the local farmer does not side-market their grain and in addition, the local farmer will have funds to go back to the field and plough for the next year,” he said. By Melisa Chatikobo