GMB announces new corn price

Zimbabwe Grain Marketing Board (GMB) has announced the 2009-10 corn floor price of US$325 per tonne, a price described by farmers as viable.

With effect from April 1, there will be an increase of US$60 from the previous season's price of US$265 per tonne. Zimbabwe Commercial Farmers' Union president, Wilson Nyabonda said the price was good considering that it was coming from the buyer of last resort.

"Hopefully, the market will respond positively and offer better prices. However, GMB should be resourced so that it has the capacity to pay farmers instantly,” he said.

"We do not want to see a situation whereby farmers spend weeks and months waiting for their money when they should be using it for their projects," Nyabonda said.

He said banks did not have structured funding for farmers hence it was important that GMB pays farmers on time.

Zimbabwe Farmers' Union director Paul Zakariya said the US$325 per tonne was welcome considering the prices being offered in the region. "Generally, prices are lower regionally mostly at US$140 per tonne, so any movement upwards in terms of price is welcome,” he said.

"It is imperative that local produce is now safeguarded against imports. We should be discouraging imports so that local produce has a market. It is better to support the local farmers to produce than rely on imports," he said.

Zakariya pointed out that the issue was not the announcement of a good price, but the procurement of the grain. "GMB should be able to buy the grain. The company should redeem its image by paying farmers quickly to avoid a situation whereby farmers will rather sell it at giveaway prices to get cash," he said.