The Acting President, Cde Emmerson Mnangagwa has explained the rationale behind the Grain Marketing Board selling a tonne of maize for $250 which they would have bought from farmers at the gazetted $390 per tonne.
He said the premier price of $390 per tonne was set as a deliberate measure to attract farmers to sell grain to the GMB and selling the same tonne at $250 to local millers for value addition makes economic sense, and makes the country is food secure.
H explained that it is only the millers who are getting maize from the GMB at $250 per tonne after making an advance payment for their maize requirements.
The advance payment for the grain millers is the one that the government is using to pay for maize deliveries and the $140 difference is paid by treasury.
“This way of payment makes both the producers and the millers happy, plugging the need for them to import from other countries which then takes away jobs from Zimbabweans and stops production in the country,” he said.
The explanation follows an outcry from Zimbabweans questioning the GMB’s business model which they said is prone to incur losses.