The announcement of the tax concession was made when the
Government was announcing the 2023/24 incentive planning production prices of
traditional grains, maize, soyabeans and sunflower.
The Meteorological Services Department had predicted
possible erratic and low rainfall patterns this year prompted by El Nino
conditions which will affect Southern Africa as a result of climate change. The
actual assessment will be made very soon before the start of the season after
regional meteorologists have made their best predictions for the coming season.
Speaking during the incentive planning prices for the main
summer crops for the 2023/24 season in Harare, Finance and Investment Promotion
Minister Mthuli Ncube indicated that they want to ensure adequate supply of
food in the country, hence attractive prices for farmers, with this backed by
allowing private concerns to import maize without duty.
‘’We are opening up borders with immediate effect and
allowing the private sector to import maize with no duty as well. The same
thing applies to the household imports of maize meal which we opened a few
months ago. That continues to ensure supply so private players should engage in
importation of grain . We want to support our citizens,’’ he said.
Lands, Agriculture, Fisheries, Water and Rural Development
Minister Dr Anxious Masuka said permitting imports of maize by private firms
was with immediate effect and those companies with their own resources could
import as much as they wished. .
‘’Mealie meal imports by households will continue and the
two ministries of agriculture and of industry and commerce, will be working out
the detailed modalities with finance and investment promotion to see what
quantities per household does this mean so that commercial consignments are
excluded from these arrangements.
‘’Private players must secure 40 percent of their annual
raw material requirements from contracting farmers out there and the private
sector is coming very strongly to assist the Government and we must thank them
for that,’’he said.
Government is moving into a structured liberalisation of
the marketing system to ensure that the private sector climbs in to back the
farmers.
The 2023/24 incentive prices for maize and traditional
grains stands at US$335,03 per tonne while the average import parity price for
maize stands at US$331 and the free on board price is US$218 per tonne.“This
should be sufficient in motivating to allow us to secure the one million tonnes
of maize into the Grain Marketing Board and other users next year.”
Besides ensuring that GMB stocks are adequate the farmers
will retain on their farms what they need for their families and other
household requirements.
Sunflower incentive planning price is at US$654,37 per
tonne and soyabean stands at US$569,02 per tonne.
Besides the sunflower incentive price to encourage farmers
to produce this oil seed, the agriculture ministry also wants to see imports of soyabeans by the
private sector to be allowed with immediate effect in view of the predicted El
Nino in building national stocks.
Dr Masuka indicated that determination of maize and
traditional grains incentive planning prices is based on the Government
approved policy of the cost plus approach although the ministry cross checks
through the import parity to interrogate the reasonability of that pricing .
“Our planning, planting and marketing price stands to be
higher but the Government is determined to assure this nation all perennial
food security so we use a cost plus mechanism to pay farmers . We use a 15
percent return and a yield of 5,5 tonnes per hectare for maize. Using this we
arrive at $335,03 per tonne for maize and for the determination of sunflower.
We want sunflower and cotton to be major oil seed crops alongside soyabean.
Soyabean is now regarded as a feed crop not an oil seed crop.
“It is 18 percent oil content. Sunflower has 30 percent
plus. It is suited to smallholder sector dry areas, it fits in the rural
transformation model that the Government is propagating using this arrangement.
The sunflower price is US$654,37,’’ he said.
Dr Masuka urged the smallholder sector to plant traditional
grains in view of the predicted lower than normal season.
With this prediction the Government is predicting 17
additional measures to climate-proof agriculture including sustainable
intensive conservation agriculture and construction of dams.
What is grown in an agro-ecological zone is determined not
by what the farmer wants but by the exigencies of that agro-ecological region.
We want that agro-ecological tailoring to be sharpened and the distribution
will be heightened.
Dr Masuka said GMB depots in the specific agro-ecological
regions will only receive crops that are suitable for the regions adding that
they are engaging all the seed houses so that they don’t sell the wrong crops
and wrong varieties in the regions.
“The 460 irrigation schemes will be irrigating maize and 90
000ha of potential irrigation for maize was also identified to maximise
irrigation so that we produce sufficient for the nation.”
Dr Masuka also said there is no need to subsidise mealie
meal.
Currently the country has more than 260 0000 tonnes of
maize in stock in the GMB and 140 000 tonnes of wheat. Herald
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