The Zimbabwean authorities are in the process of establishing price frameworks for contracted farmers, which will guide the Grain Marketing Board (GMB) in its purchase of agricultural produce from these producers. This was revealed by the Deputy Minister of the Agriculture, Fisheries, Water and Rural Development portfolio, Vangelis Peter Haritatos, during a parliamentary Q&A session.
Haritatos clarified that the government's intention is not to impose direct price controls, but rather to announce pricing structures for produce procured under state-run initiatives, such as the Presidential Input Programme and the National Agricultural Programme. He emphasized that the private sector will still have the flexibility to determine its own prices based on market supply and demand dynamics.
The Deputy Minister explained that the government plans to communicate pre-planting prices as well as prices paid to producers. This, he stated, is aimed at providing farmers with clear pricing information before they commit to a particular crop. During the implementation of these pricing frameworks, the authorities will engage with all relevant stakeholders, including farmers, input suppliers, and contractors, to ensure a consultative approach.
Haritatos highlighted that the government is the primary buyer of grain, and therefore, it is necessary for them to announce the pricing structures. The expectation is that these price frameworks will serve as a reference point for consumers and the general public, enabling farmers to secure comparable remuneration.
The government's objective is to prevent a scenario where farmers are exploited or taken advantage of. Haritatos reiterated that the authorities' actions are intended to complement, rather than suppress, market dynamics.
