State sets aside R1.2bn to help farmers weather virus storm
The department of agriculture has set aside a package of R1.2bn to deal with the effects of the coronavirus outbreak and ensure sustainable food production after the pandemic.
At a news briefing on Tuesday, agriculture, land reform and rural development minister Thoko Didiza said the department will make the details of this package available in the coming days, together with the channels available for applications. The department has also availed R100m to the Land Bank to assist farmers under distress.
The coronavirus has left the global economy reeling and stocks plummeting amid fears of a jobs bloodbath. The pandemic has also led to a decline in Asia’s agriculture demand and falling agricultural commodity prices.
In a bid to stop the spread of the virus, President Cyril Ramaphosa announced a 21-day lockdown across the country which will come into effect on Thursday midnight.
Didiza said while several businesses will be affected, the agriculture and food supply sector will remain operational during the lockdown.
“Our food supply system will remain functional during this period. Agricultural production in all its forms will remain uncompromised,” she said.
This includes all services, as well as the provision of veterinary and advisory services. Live auctions of livestock and sale of other agricultural commodities will continue but under the strict conditions prescribed by the president, Didiza said.
Exports and imports of critical agriculture commodities and the logistical measures will continue during the lockdown period to ensure global and national food security. This not only applies to retailers but the entire food value chain, from farming-related operations, agro-processing and food manufacturing, logistics and related services, wholesale and retail services, and all support functions that ensure efficient delivery of the agro-food system.
“As a nation, we boast of being self-sufficient in food production, and a part of this year’s supply is yet to be harvested — which promises to be a bumper field crop and citrus harvest — and these processes will continue as normal as a foundation of SA’s food system,” the minister said.
“I will be making regular updates on crop estimates to inform the country of our critical commodity supply.
Food price monitoring will be conducted on critical food basket commodities and reports will be given to the nation on regular bases.
“This will be to ensure that we do not have inflated prices in the sector,” Didiza said.
“I appeal to the public not to embark on panic buying, as the president has indicated. The country has sufficient food supplies. Panic buying will only cause disruptions and inconvenience in the food system.
“I urge you, fellow citizens, to also be considerate and purchase that which is sufficient for your needs. To wholesalers and retailers, we urge you not to engage in price gouging, at such a crucial time for the country.
“You have an important role to play in the supply of food, and the fight against Covid-19,” the minister said.
The government is tightening the screws on companies that cash in on the coronavirus by bumping up prices, trade & industry minister Ebrahim Patel said on Tuesday.
He told a news conference that competition authorities are investigating 11 firms for selling products such as masks and sanitisers at inflated prices. Those found guilty will be fined up to 10% of turnover or one year in jail.
The coronavirus has wreaked havoc across the globe, rapidly spreading from its epicentre in Wuhan, China, to more than 190 countries.
On Monday, President Cyril Ramaphosa announced a threeweek, nationwide lockdown, effective from midnight on Thursday, March 26, as the government tries to curb the spread of the virus.
Patel said the Industrial Development Corporation (IDC) has set aside R3bn to support businesses in distress. The IDC is a key national development finance institution set up to promote economic growth and industrial development.
Patel said the IDC will consider relaxing loan repayments to funded companies on a caseby-case basis.
The minister also elaborated on a list of essential services that will remain operational during the lockdown. The list includes heath practitioners; staff and service providers responsible for the generation, transmission and distribution of electricity; security personnel; agricultural and food supply-related operations; retailers, wholesalers, spaza shops and malls; financial services; and the media.
Meanwhile, the DA said it welcomed the rejection by the government of the “absurd proposal by the department of small business development to link SMME funding during the national lockdown to racebased ownership”.
DA MP and trade & industry spokesperson Dean Macpherson said: “This issue has caused mass panic in the business community across SA due to a leaked document from the department.”
This is why the DA wrote to Patel, Macpherson said, to encourage him to put a moratorium on BEE requirements linked to funding and incentives because it would effectively miss 93% of all businesses that are BEE exempt and do not require black ownership.
“The DA is absolutely clear that funding must go to businesses that need it and that will keep people employed, regardless of the race, sex or geographical location of the business.
“The stakes are too high to be playing ‘battleships’ political ideology when so many jobs depend on quick and easy access to funding.”
WE BOAST OF BEING SELF-SUFFICIENT IN FOOD PRODUCTION, AND A PART OF THIS YEAR’S SUPPLY IS YET TO BE HARVESTED. THESE PROCESSES WILL CONTINUE