Government has no plans to write off Command Agriculture
debts and expects beneficiaries of the facility to pay back dues. Command
Agriculture is a cost recovery scheme that was introduced by Government in 2016
to substitute importation of maize.
This production programme targeted both A1 and A2 farmers
as well as Government institutional farms, particularly those near water
bodies.
Under the facility, farmers are provide with seed,
herbicides and fertilisers, among other inputs.
In a recent statement, Finance and Economic Development
Ministry said since the inception of the Command Agriculture programme to date,
Government has through Sakunda Holdings availed funding amounting to US$1, 02
billion in support of the crop production.
The ministry said Government had this year disbursed $603,8
million, excluding interest to Sakunda.
“Government has fully availed all the local funding for the
contracted hectarage through the financiers who were contractually tasked to
handle the procurement processes. Any third-party reconciliations and
settlements are therefore handled in accordance with that arrangement.
“However, in some instances where inputs required foreign
currency allocations and there are still outstanding foreign currency
obligations, these will be treated on a case-by-case basis in accordance with
the current framework for resolving legacy foreign currency obligations,” read
the statement.
The ministry urged farmers to continue paying their debts
as there are no plans to write off the debts.
“Records for the two seasons are still being updated, but
so far over $180,3 million has been collected from farmers.
“Government has not written off any debts to farmers and
does not intend to do so. All farmers are expected to honour their obligations
under the programme in full, even after the programme has been wound up,” read
the statement.
The ministry said Command Agriculture was continuing for
the next seasons.
“As from the 2019-2020 summer cropping season, and in line
with the Transitional Stabilisation Programme (TSP) and the Budget Statements
for 2019, the financing model for Special Grain and Oil Seed (Maize, Wheat and
Soya Beans) Production (Command Agriculture) has been transformed and now
involves commercial banks and Private Sector Out-grower schemes, working
jointly with Government on a Public Private Partnership (PPP) basis.
“So far the banks that have entered into a partnership with
Government include, Agribank, CBZ Bank and Stanbic Bank. More banks are
expected to join the programme, therefore bolstering efforts for domestic
resource mobilisation.
“In the main, Government will provide guarantees to the
banks for them to lend to farmers on a commercial basis,” said the statement.
In 2016, Government initiated the Command Agriculture
programme targeting maize production, with the objective to improve food
security at both national and household levels.
In 2017, the programme was extended to wheat and soya beans
and in 2018, it was further expanded to cover the livestock, fisheries and
wildlife production sub sectors. Herald
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