Maize farmers have welcomed a 30 per cent bonus offered by the Government to incentivise those who deliver their grain to the Grain Marketing Board (GMB) before the end of July.
Indigenous Commercial Farmers Union president Mayiwepi Jiti said the move was a noble one as farmers will no longer sell their maize on the parallel market where they risk being duped by unscrupulous dealers. She said:
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It is a very good move, considering that $12 329 is now equivalent to US$176, which is way below the parallel market price of maize.
Farmers are selling on the parallel market where they risk being duped by unscrupulous dealers. Now that GMB is offering a higher price, more grain will go to the GMB.
The GMB is now offering a fair price that will be attractive to most farmers.
Cabinet recently approved a 30 per cent incentive on the floor producer price for maize and traditional grains for deliveries made between April 1 and July 31, 2020.
The 30 per cent bonus means that farmers will now be getting a producer price of $16 028 per tonne of maize delivered while the price for the traditional grains will now be $16 725 per tonne.
The price of maize and small grains was initially set at $12 327 and $12 865 per tonne, respectively.