The Cabinet of of Zimbabwe has approved the proposal by the Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement to review the producer prices for maize, small grains, wheat, soya beans and cotton.
Maize and other small grains are now priced at RTGS$726 per metric tonne, that is almost double the price that was paid last season which stood at $390 per tonne.
Cotton is now priced at a whopping RTGS$1950 per metric tonne, wheat RTGS$1089.69 per tonne and soya bean is now pegged at RTGS$918 per tonne.
In a bid to avoid prices increases the government has also maintained the 39.5% subsidy on the selling price to millers.
Now the question is how will the markets react to this increase, the government is hoping that this move will result in increased agricultural production, and hence boost national food security.
