Zimbabwe today set the producer price of maize at $726 a tonne from US$390 but said it will maintain a 38.5 percent subsidy to millers so that retailers do not increase the selling price of mealie meal to consumers.
It also set the price of wheat at $1 089.69 a tonne, that of soyabean at $918 a tonne and cotton at $1 950 a tonne.
“In US dollar terms the prices are now aligned to the import parity prices in the region,” the Ministry of Agriculture said.
“The review of the producer floor price is expected to result in increased agricultural production, and hence, boost national food security.”
At the old producer price unscrupulous people could import maize and sell it to the Grain Marketing Board at a profit.