The Grain Marketing Board (GMB) has disbursed US$7.3m and ZWG83.1m to procure over 25,000 tonnes of grain as part of efforts to replenish Zimbabwe’s strategic reserves, Business Times can report The grain marketing season officially commenced on April 1, with the bulk of deliveries traditionally expected between June and September However, despite a record harvest of 2.9 million tonnes for the 2024/25 agricultural season, grain deliveries to the GMB have remained worryingly low GMB is offering a payment model of 70% in United States dollars and 30% in Zimbabwe Gold (ZiG) for every tonne of grain delivered
But analysts say this hybrid payment method, coupled with delayed disbursements, is discouraging farmers from engaging with the national buyer In his 2025 Fiscal Policy Review, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube revealed that only a quarter of the strategic grain reserve replenishment target has been met “Government through GMB targets to procure at least 100,000 tonnes for replenishment of strategic grain reserves at a price of US$376 per tonne, payable 70% in US$ and 30% in local currency So far, GMB has managed to procure a total of 25,812 metric tonnes valued at US$7.3m and ZiG83.1 million,” said Professor Ncube
Despite the bumper harvest, which exceeds the national grain requirement of 2.2 million tonnes for both human and livestock consumption, most of the produce is expected to be sold via private market arrangements These include the Zimbabwe Mercantile Exchange (ZMX), a platform promoted for its role in cultivating a functional agricultural market system that incentivizes farmers through market-based pricing However, farmers continue to express frustration over GMB’s payment framework Edward Dune, an agriculturalist and former Zimbabwe National Farmers Union senior executive, said farmers need to be paid fully in foreign currency and on time if GMB expects increased grain deliveries
“As you know, farmers procure most of their inputs in US$, hence should get 100% payment in foreign currency The current scenario of GMB not being able to replenish the strategic grain reserves as they would want is because of the 70% payment in forex and the rest in local currency and the general delay in payments Farmers need full forex payment on deliveries—not anything else,” Dune toldBusiness Times Due to these challenges, many farmers are withholding their grain or selling it to private buyers who offer approximately US$320 per tonne on a cash-and-carry basis
The risk, analysts warn, is that despite a strong harvest, Zimbabwe could still face depleted strategic grain reserves, particularly in deficit-prone areas This situation is occurring against the backdrop of a significant rebound in maize production, following the devastating effects of the El Niño-induced drought last season The area planted to maize increased by 6.4%, from 1,728,897 hectares in the 2023/24 season to 1,839,373 hectares in 2024/25—exceeding the government’s target of 1.8 million hectares As a result, maize production surged to 2,293,556 metric tonnes, a 261% increase from the previous season
Likewise, the area planted to traditional grains rose by 7% to 434,374 hectares from 405,116 hectares last year, exceeding the seasonal target by 4% Notably, pearl millet recorded a substantial 29% increase in planted area to 251,265 hectares, up from 194,232 hectares last year Total traditional grain production is estimated at 634,650 metric tonnes, comprising 436,784 tonnes of sorghum, 188,261 tonnes of pearl millet, and 9,605 tonnes of finger millet While the harvest figures suggest that Zimbabwe is food secure on paper, policy missteps and market inefficiencies threaten to undermine the country’s ability to adequately stockpile grain for future emergencies
Source: Business Times
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Source: Businesstimes
