eBusiness Weekly
Livingstone Marufu
HARARE – The Grain Millers Association of Zimbabwe (GMAZ) is seeking $11 million in foreign currency to procure 30 000 tonnes of wheat to avert potential bread shortages.
This comes after wheat stocks depleted to alarming levels over the past two weeks after the country has been left stocks of only two to three weeks.
The millers have written a letter to the Reserve Bank of Zimbabwe to expedite the processing of the $11 million before their Canadian supplier diverts the wheat to other countries.
In a letter written to RBZ Governor Dr John Mangudya, GMAZ chairman Tafadzwa Musarara said:
“The wheat milling industry is most grateful to your office for the initial payments that we have started receiving towards the June to December 2018 wheat imports scheme.
“I regret to advise, however, that supplier of the first ship berthing in Beira circa June 14 is insisting on the full payment of $11, 25 million for the 30 000 metric tonnes.”
He said as on Wednesday this week, the country has only 36 749 metric tonnes of wheat to last up to June 26 2018.
Millers noted that it is of national security that the promised payment to Holbud be made by today to allow continued supply.
An interim import measure between now and the next local harvest in November 2018, GMAZ and Holbud Limited have agreed to fulfilment of the agreed nostro payment obligations to supply wheat during that aforementioned period.
On July 18, 40 000 metric tonnes will reach Beira and further consigned to Harare, on August 18 further 40 000 tonnes will also come and a month later another 40 000 tonnes will be coming to Harare.
While in October and November, 80 000 tonnes are also expected to come to Harare.
The association is concluding the wheat supplies with Canadian wheat contract farming concern, NAM Limited for the supply of wheat.
The Canadian delegation is expected soon in the country.
Zimbabwe produced over 200 000 tonnes of wheat under the Command Agriculture programme last year and the millers have bought it all.
The quick depletion of wheat stocks in the country is mainly attributed to the changing dietary requirements of people between six and 40 years which have changed very much in the last few years.
Wheat requirements have risen to 450 000 from 350 000 in 2010, while rice requirements have also surged to 250 000 tonnes in 2017 from 50 000 in 2007.
Due to foreign currency shortages in the country, millers are owing various suppliers over $55 million of foreign payments, this has caused some suppliers to cut the supply line to some millers.
Zimbabwe requires over 450 000 metric tonnes of wheat annually and this year’s Command Wheat programme is targeting over 300 000 tonnes of wheat output after planting over 50 000 hectares.
