This was said
during a tour held by the Industry and Commerce Deputy Minister, Raj Modi, at
different milling companies in Bulawayo on Monday.
Updating the
Deputy Minister during the tour of National Foods Limited, GMAZ Southern Region
chairperson, Mr David Moyo, said the sector welcomes the Government’s
initiative to lift the grain import ban.
He revealed
that Southern Region players have been facing challenges, with many millers
having halted production due to a shortage of raw material.
“We invited the
Deputy Minister to come and assess the situation of millers in the Southern
Region; milling plants don’t have the raw material, and even the available
mealie meal is not enough to deliver to the shops,” said Mr Moyo.
“We have
reached out to the Government, and we are so happy that the Government has
heard our cry; the SI 87 of 2025 has been lifted, so that everyone can import
maize.”
The recently
gazetted Statutory Instrument 87 of 2025 amends the Agricultural Marketing
Authority (Grain, Oilseed and Products) By-laws of 2013, outlawing the
importation of grain, oilseeds, and related products, except under limited
circumstances.
According to
the SI, with effect from April 1, 2026, processors will be legally required to
procure at least 40 percent of their annual raw material needs locally. By
April 1, 2028, all such requirements must be sourced from local farmers.
Lands,
Agriculture, Fisheries, Water, and Rural Development Minister, Dr Anxious
Masuka, is on record as saying the policy cements efforts that began in 2020,
when off-takers were persuaded to finance part of their raw material
requirements through local contracting.
To safeguard
farmers, the instrument introduces two pricing benchmarks: an import parity
price (the landed cost of grain in Zimbabwe, including freight and insurance)
and a production parity price, pegged to local production costs.
Where import
prices fall below local parity levels, the difference will be paid into the
Agricultural Revolving Fund, insulating domestic producers from external
shocks.
However, to
avoid price hikes and artificial shortages in the market, millers have been
tasked to pay US$10 per tonne to the Agricultural Revolving Fund instead of the
total difference, which the players say should be done officially so that they
do not face challenges of breaking the law.
“The Lands,
Agriculture, Fisheries, Water and Rural Development Minister has said any
miller can import maize by paying US$10 per tonne, but our concern is that the
SI remains the same, saying that where import prices fall below local parity
levels, the difference should be paid into the Agricultural Revolving Fund,”
said Mr Moyo.
“We appeal to
the authorities that the SI should reflect that millers can pay US$10 per tonne
because we are afraid that at any time the Minister or the Permanent Secretary
can be changed, but the SI will remain in place. But we are hoping that they
are solving it, as we know that our Government is a listening Government. As
millers, we are there to complement the Government’s efforts in making sure
that everyone is fed.”
He added that
the region does not produce much grain and they rely on buying it from other
regions, which results in increased costs, which are then passed on to
consumers.
In his
response, Deputy Minister Modi said that he visited the millers to show the
Government’s commitment to making sure that all the grievances are solved as
soon as possible.
“The Government
will do its best to make sure that millers start importing as soon as possible.
We cannot afford to have milling companies close because of the shortage of raw
material. We will make sure that they can soon resume milling,” said Deputy Minister
Modi.
“The Government
has already started working on this; millers have been told to pay only US$10
per tonne, not the total difference.” Chronicle
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