THE DEPUTY MINISTER OF AGRICULTURE (LIVESTOCK) (HON. ZHANDA): Thank you Mr. President. I want to thank the Hon. Senator for the question. Let me also clarify probably what I said and what I meant. Maize is no longer a controlled commodity; it was de-controlled. When Government decontrols a commodity, it means that Government is not only the buyer. Anybody can buy because it is legal for anybody to buy maize. That is what I meant.
However, I did say that Government offers $390, a price that you cannot see anywhere, as a way of incentivising farmers to produce what can be adequate to us as a country and that is what has happened. I am happy that you also see the way we have seen it as Government that the Command Programme has produced results. I am not talking on whether it is $4 million, $3 million or whatever it is but we are on the right track in terms of self-sufficiency or producing what is required for us.
I think you are aware that the Command Agriculture Scheme is not meant for free. It is on a full recovery basis and the only way as Government we can recover what we have advanced to farmers is to encourage them to market their produce through GMB. Moreover, that is where they are paid more than anybody and one would be surprised why one would opt to sell it through a private buyer who will obviously offer them less. In my view, if you find a farmer who wants to sell to a private buyer who offers them less, it means obviously he is trying to circumvent paying what he owes or has been advanced under the Command Agriculture.
Government has considered that obviously because of the $390, which might be perceived to be a bit higher, will encourage millers and stock feed manufacturers to buy from GMB at import parity, which means it would be probably less than $390. So, the import parity figure will be a figure that has to be agreed. Therefore, I do not see anything wrong with that.
One would have also wanted to encourage that this is why we had a demise of the cotton sector in this country where COTTCO was the only financier of the growing of cotton. Other ginneries came and wanted to buy what they have not invested in. At the end of the day, that is why you saw cotton was no longer being grown by other farmers because of side marketing. Therefore, all those private companies as well, one would think that they should also not come at the middle of the value chain. They must start at the beginning by wanting to cause maize to be grown on their behalf and not to come and buy what has been financed by others.
From a Government point of view, I think for this Command Agriculture to go ahead because Government borrowed money; this scheme was not financed by Government, it was financed by money from the private sector and that money has to go back. Therefore, it is prudent and important that the money must be paid back in order for the programme to go ahead for the next seasons to come. I thank you.
Continued next page
(330 VIEWS)
