Wheat Farmers To Receive All Payments In Foreign Currency
The Grain Marketing Board (GMB) has announced that it will exclusively pay for all wheat deliveries from the 2024 winter wheat season in United States dollars.
On Friday, September 13, the GMB revealed the approved producer prices for winter wheat for this season.
The “standard” wheat grade will be priced at US$450 per metric tonne, while the “premium” grade will fetch US$470 per metric tonne, with all payments made solely in foreign currency.
Previously, the GMB paid farmers with a mix of local and foreign currency. However, due to the volatility of the local currency, farmers have been advocating for payments to be made entirely in USD. Said GMB chief executive officer Edson Badarai:
GMB will purchase all wheat financed under the Presidential Input Programme (PIP), and also wheat from Self-financed farmers, wherein Self-financed farmers will sale to the best advantage, either to GMB or the market. In addition, GMB remains the buyer of last resort.
Contractors will buy back contracted wheat at market prices. Furthermore, GMB, working with ZMX, shall provide commercial warehouse receipts services to all players.
GMB is committed to working with farmers and all stakeholders in contributing to the national food security.
For any clarification, the public can contact the GMB Corporate Communications Department through the telephone line +263 8677004941 or email at publicrelations@gmbdura.co.zw.
While this announcement is likely to please wheat farmers, some commentators have queried why other farmers, such as those growing tobacco and maize, received partial payments in local currency.
Critics suggest that the governing elite, who are believed to be the majority of wheat farmers, are reluctant to accept payments in the Zimbabwean dollar (ZiG) due to its instability, therefore, the move by GMB to buy wheat solely in foreign currency.
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