Middlemen rip off communal farmers

Published: 15 July 2017

COMMUNAL farmers in rural areas are reportedly being ripped off by middlemen, who armtwist them into selling a tonne of maize for less than $200, only for them to resell it at the Grain Marketing Board (GMB) for $390.

Chiefs Council president, Fortune Charumbira expressed concern at the ripping-off of villagers by middlemen, taking advantage of the communal farmers' mistrust that GMB will honour payments.

Charumbira asked Agriculture and Irrigation Development minister Joseph Made in the Senate on Thursday what the government was doing to ensure communal farmers do not fall prey to the middlemen.

Made said this was a criminal offence.

"I think this is an issue where we have to assist each other because our small farmers do not have anything because of the drought," he said.

"Now they have had an opportunity to harvest something after getting the Presidential inputs.

"We need to assist each other to ensure that we stop these middlemen, who are ripping off the farmers.

"We have the power and authority to say that people, who are doing that, are criminals because that is a criminal offence and they can be arrested."

GMB has a history of failing to honour payments for grain deliveries, a situation that forces many to turn to middlemen.

The government has assured farmers of timely payments for any grain deliveries, setting the price of a tonne of maize at $390 - way above market value and in the process, opening avenues for middlemen to cheat the communal farmers and make quick cash.

"It is true that confidence has to be instilled in our people that maize will be paid for, but the small-scale farmers have not yet brought in their produce," Made said.

"The taste of the pudding is in the eating (sic). As we move towards buying grain from the small-scale farmers, I will take note and ensure that we pay."

Social commentator, Mlungusi Dube said the problem "emanates from the government pricing the grain above market prices".

"The problem is pricing above market prices, thereby, creating an arbitrage opportunity for those who have access to selling to the GMB," he explained.

"You cannot fight middlemen in the market. The message that the government should be taking home is improper pricing and let the market reach its own equilibrium price without interference.

"One also wonders why the GMB should buy above market price. This is a government that has already subsidised production costs and it goes on to pay more again, thereby bleeding itself from two fronts."
- newsday

Tags: GMB,