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Published: May 12, 2009
Harare (ZimEye) – The state-run Grain Marketing Board has failed to pay farmers who delivered their produce last season.
The GMB deputy general manager for marketing Zvidzai Makwenda admitted that the parastatal was broke and could not pay farmers.
He said the GMB was forced to borrow from the market although no loan has been secured.
The cash-strapped GMB has also failed to pay workers their April salaries.
“Government has stopped funding our operations and we have had to go on the market to borrow money to pay farmers,” said Makwenda.
GMB recently announced a maize floor price of US$265 per tonne in a bid to lure farmers through competitive prices.
Farmers now opt for private buyers since GMB cannot afford to pay them.
The government also owes farmers millions of United States dollars. (ZimEye, Zimbabwe)