Sat, 03 Jun 2017 12:29:28 +0000
By BUUMBA CHIMBULU
THE 10 percent export duty on maize, coupled with the current low prices of the commodity, will have a huge negative impact on Zambian farmers, says the Grain Traders Association of Zambia (GTAZ).
GTAZ executive director, Chambuleni Simwinga, said the laws of supply and demand had already taken effect and that the current prices on the market were ‘‘frighteningly low’’.
Briefcase buyers in Sothern Province were buying a 50 kg of maize at K45 while K55 is being offered to farmers in Mumbwa district.
Mr Chambuleni said in an interview that with such a situation obtaining on the ground, farmers would not be able to recover the cost of production of the maize.
“It is very unfortunate that the Ministry of Agriculture has maintained the 10 percent export duty on maize in a year that Zambia has produced a bumper crop with an estimated surplus of 1.2 million metric tons,
“This decision has been made despite numerous submissions by stakeholders to engage the ministry and provide advice to open up the export of maize and mealie meal products going back to December 2016 in order to reduce the quantity of maize carried forward into the 2017 marketing season,” he said.
Mr Chambuleni said the Ministry of Agriculture did not heed advice and as a result 569,000 metric tonnes was carried forward to the new season, exacerbating the maize surplus in Zambia.
He said for a country that consumed 2 million metric tonnes the carryover of stock from the previous season should be limited to only 10 percent of that amount.
Mr Chambuleni said only 200,000 metric tonnes should have been carried into the 2017 marketing season to make room for the large bumper maize crop that was anticipated by all stakeholders, including the ministry itself.
“The prolonged restriction on exports of maize and mealie meal when there was demand for both in the region, the large maize crop produced this year and the 10 percent export duty will have a huge negative impact on Zambian farmers.
“The Southern African region has produced a surplus crop, so there will be no demand for Zambian maize,” he said.
