Grain Farmers Demand Full USD Payments
Zimbabwe’s grain farmers are urging the government to make payments entirely in United States dollars (USD) within one week of delivery, reported Business Times.
This request comes after the Grain Marketing Board (GMB) announced a producer price of US$335.14 per tonne.
While farmers appreciate this price, they are worried about payment delays and the use of local currency in the payment process.
Farmers have argued that many of their operational costs, such as seeds, fertilizers, and chemicals, are in US dollars.
Receiving partial payments in local currency poses difficulties, especially given its rapid depreciation.
Patrick Chiruka, a farmer from Shamva, called on the government to fulfil its commitment to USD payments. He said:
What we want is to receive the full US$ 335.14 per tonne on time. Receiving part of the payment in local currency makes it difficult for us to plan our next steps. The government must honour its commitment to paying in US dollars.
Goromonzi-based farmer Alfred Nyarambi said he has no use for the local currency, as he purchases all his inputs in US dollars. Added Nyarambi:
All my inputs are purchased in US dollars. Paying me in local currency undermines the entire payment process, especially with the prevailing exchange rate volatility.
Edward Dune, an agriculturist and former executive of the Zimbabwe National Farmers Union, said the new maize price is a positive step, aligning with global market standards.
However, he stressed that the government must ensure timely and full payments in US dollars to encourage farmers to continue selling their grain in the formal market.
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