Black market stifling agric
IF left unchecked, the volatile exchange rates will decimate the positive gains that are being recorded in the agricultural sector, a Government Minister has said.
Monetary authorities have been dealing with the huge task of stabilising the local currency, which has endured exponential depreciation due to speculation and the activities of cash barons. While the official rate is fixed at 25 to one against the US dollar, the local currency is trading at much more on the black market.
Speaking to The Manica Post on the sidelines of the launch of the Presidential heifer pass-on scheme at Taguta Farm in Chipinge early this week, Deputy Minister of Finance and Economic Development, Cde Clemmence Chiduwa issued a stern warning to those driving the exchange rate.
He said the cash barons’ activities are causing fluctuations in prices of agricultural commodities.
“We are a country that needs foreign currency and we can generate this through the promotion of agriculture. We came up with a fixed exchange rate, but what is happening on the market is a violation of the standing Government policy.
“We do not grow a currency and as a Government we have to come up with policies that will arrest the situation and make sure that when our farmers plan, they know the price that they will sell their cattle at.
“Every farmer, be it tobacco, maize, wheat or cotton, should know the value they will get from their crop. But as long as our market continues to vary on a daily basis, it will be difficult for our farmers to plan,” he said.
He said Government is in the process of putting in place measures to limit activities on the parallel market. He assured farmers that funding mechanisms are put in place to encourage production from those working the land.
Lands, Agriculture, Water and Rural Resettlement Minister Perrance Shiri said Government is seized with increasing land under irrigation in order to stimulate production and earn the much-needed foreign currency through exports.
“In each district, we are putting 200 hectares that are being irrigated under the Presidential Inputs Scheme. For those in farms, we will repair the irrigation schemes and even establish new ones where there is need. We will also construct dams to feed these areas,” he said.