Produce more maize if you want the 10 % tax on exports to be waived-President Lungu

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President Edgar Lungu held meeting with ZNFU President Jervis Zimba at State House on Saturday 17th June 2017 with Mkushi Commecial farmers and ZEMA over Dam Project in Mkushi farming Block - Picture by Eddie Mwanaleza/State house.
President Edgar Lungu held meeting with ZNFU President Jervis Zimba at State House on Saturday 17th June 2017 with Mkushi Commecial farmers and ZEMA over Dam Project in Mkushi farming Block – Picture by Eddie Mwanaleza/State house.

GOVERNMENT has challenged farmers to be competitive and produce more maize if they want the 10 percent tax on exports to be waived.

President Lungu says Government introduced the tax on maize exports to preserve food security and not as a measure of revenue collection.

Mr Lungu said farmers should therefore invest heavily to produce more crop for local consumption and export.

“The idea is to have a mechanism that will allow us reserve enough for ourselves and export and at the same time encourage farmers to invest in the crop,” Mr Lungu said.

The Head of State said this yesterday when he met officials of the Zambia National Farmers Union (ZNFU) led by its president Jervis Zimba.

The President said Government has been discussing the matter and will soon announce a lasting formula.

And Minister of Finance Felix Mutati said he will on Tuesday announce a benchmark or target which farmers will have to meet to qualify for a waiver on exports.

He said the benchmark will be a motivation to encourage farmers to produce more.

Mr Mutati said Government wants to address the bumper crop harvest and part of the solution lies in the exports.

“Whether we shall peg it at production of 2 million or whatever, we shall announce. So if in a season the production of maize is in excess of 2 million for example, the 10 percent drops off to encourage export. If it is below that level, obviously then we got to protect ourselves,” Mr Mutati.

And Mr Zimba said the 10 percent tax on exports is taking a toll on farmers, especially the small-scale farmers.

Mr Zimba said tax on exports coupled with the council levy and toll gate fees have impacted negatively on the pricing of the produce.

He said government should consider standardising the council levy as it is currently ambiguous.

Mr Zimba further appealed to the Food Reserve Agency (FRA) to consider indicating the price at which it will procure maize in the next marketing season to save farmers from exploitation by private buyers.

“Farmers are waiting to see the price at which FRA will be buying. If FRA could tell us what they will be buying at, perhaps farmers will be patient and wait,” Mr Zimba said.
And a local commercial farmer has called on Government to protect potato growers from cheap imports from South Africa, reports Jack Zimba in Lusaka.

Stuart Cooke, who is managing director of Chartonel Farms in Lusaka, said a lot of cheap potatoes have been allowed onto the Zambian market from South Africa and that this is disadvantaging local farmers.

31 COMMENTS

  1. Bwana Lungu how are they gonna produce more when you make farm inputs and cost of living itself very expensive?

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    • How can farmers grow more when they have to pay 75% more for electricity in one farming season? Fertilisers have gone up 100% and the e-vouchers are unfunded for most small farmers! #TalkingCrapAtPlotOne

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    • Trending now………..

      “The Lungu administration has targeted and shut down all the independent voices, especially the media. Those who dared to raise their voices were either forcefully shut down, as was the case with only independent newspaper The Post, or they’ve been bullied into silence, as was the case with Muvi TV and Komboni Radio.”

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    • This govt, how did we end here? Production is a function of inputs cost and time. Now electricity cost is anti-production, fertilizer cost is unbelievable to say the least. Can someone please advise HE how things work, let him appoint people who can advise and not Dora and team who are in it for they pockets and have no Pf business at heart of putting more money and low taxes.

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    • Producing more is not by word of mouth Lungu. What are you doing to encourage farmers to do so when you over charge fertilizer and other farm implements? Let alone the cost of having no electricity, full of load shading yet with highest tariffs.
      Mutati is also very Dull you should have benchmarks before the meeting?? Damn it’s like the man just dreams of things. No proper planning.

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    • Lazy bumz lungu imposes 10% tax on peasant farmers yet Copper mines pay almost nothing for copper exports. These copper mines then crook ZRA by claiming exorbitant tax rebates after they inflate imported spares & equipment.

      Just go to youtube & search for video of SANTIAGO, CHILE then compare to Lusaka, then you’ll see what a well managed copper industry can do.

      The farmers have produced bumper harvests year in year out, even under difficult circumstances by PF regime army worms, Dora was in Las vegas, late delivery of imports, drought etc. What more does lazy bumz expect?

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    • A joke, a real joke, not a president. He doesn’t sound like one. Sir, how are you using the tax incentive to boost production? The tax incentive is an ingredient, an input that government can use, uses to boost production. You seem to have it the other way round – boost production by osmosis in order to wave off the 10% tax. What kind of reasoning is that?

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  2. This Jervis Zimba guy is confused. He is not patriotic. He doesn’t think of anybody but himself. I’m glad the Government has put him in place.

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    • Even Wakos are fed up of senseless Wakonism. No need to support an idyot just because you are from the same village.

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    • Even Wakos are fed up of senseless Wakonism. No need to support a PFooI just because you are from the same village.

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    • A challenge to Mr. Lungusha…..Govern the country levelheaded if you want us to recognize you

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  3. The problem here is the advisors are misleading the President! Mutati your friend Dora alreadly announced that the nation has a maize bumper harvest of above 3 millions tons which is above the 2million you speak of. Now Zambia’s reserve for food security purposes is in the range of 1 million tons, we are 2 million tons above currently and people are still harvesting their crop. It will be very difficult for people to take up farming next year if they are unable to clear the input costs-take that into consideration. Jervis Zimba for once Znfu is speaking sense- keep it up! Only crooked millers and briefcase middlemen are benefiting from the current low prices.

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    • Who appoint the advisors? The problem is Wrungu himself he appoints people of low calibre.

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  4. AS MENTIONED BEFORE: THE SOLUTION IS SIMPLE: 1)FIRST ALLOW SMALL SCALE FARMERS THROUGH THEIR COOPERATIVES TO EXPORT AND REDUCE THE EXPORT TAX TO 3%, 2)LET MILLERS BUY ONLY FROM COMMERCIAL FARMERS AND FRA TO MEET FOOD SECURITY REQUIREMENT AFTER THAT ALLOW COMMERCIAL FARMERS TO EXPORT, 3) MILLERS SHOULD BE THE LAST ONES TO BE ALLOWED TO EXPORT AFTER FOOD SECURITY IS REACHED

    SMALL SCALE FARMERS THE THE MAJORITY AND FARMING IS THE MAIN ECONOMIC ACTIVITY FOR MOST PEOPLE IN ZAMBIA-FARMING MUST BE PROFITABLE OR ELSE PEOPLE WILL STOP FARMING AND THEN WE WILL START IMPORTING MAIZE FROM ZiMBABWE AGAIN!

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  5. Some people who are advising the President must be probed. I suspect collusion with milling firms is what is happening here.
    Let the ACC begin investigating the milling firms and any meetings they have been having with officials at Min of Finance and Agriculture. The only people benefiting from this stance are the millers! The milling industry in Zambia is a oligarchy of Greek mafias that have held the nation at gunpoint for too long. The connection between them and Congolese Greeks is well known which is why they are exporting the produce across to Katanga province- these chaps work with the middlemen maize buyers as one team to disadvantage farmers!

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  6. 2020 sometimes i dont agree but you are correct on this. I would stop millers fron exporting maize only mealie meal
    Our food security has to be safeguarded first. Government thru FRA must announce early benchmark prices so ax to stifke suitcase buyers. The unknown with the the effectiveness of e voucher next season is a big worry.
    Well articulated 2020

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  7. Encourage processing of crops or grains into something else before exporting it. Value addition is the way forward here. If you export raw materials you will create jobs for south Africa and in turn import the same at a higher value and lose on the forex you earned when exporting it. Encourage value adding and those companies in South Africa will shift their production factories here and start to export to other regions . This will create jobs and earn us much needed forex. NUMSA will then start respecting us.

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    • Oval Head let’s work with facts and figures, how many indigenous Zambian Milling firms realistically are exporting the finished product of mealie meal? Most are these Greek owned milling firms, secondly how many more jobs are being created as for this value addition you speak of? Is this 10 percent tax being placed on the export of this mealie meal as well? MOST IMPORTANTLY HOW MUCH OF THIS MONEY FROM THE EXPORT OF MEALIE MEAL IS COMING BACK TO ZAMBIA? If small scale farmers are given a level playing field to export all the money earned comes back, the small scale farmer is your uncle, father, brother, mother and cousin don’t disadvantage them, empower them!

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  8. Its not good news to the ears of U5 and his ********** to see another bumper harvest by Lungu. They prayed for rain and it came. ********** planted army worms and one Lungu defeated them all and farmers were saved. The quick and resolute intervention by Lungu on the army worm threat is one item that should stand out as an example of Lungus determination to overcome difficulties and challenges. Imagine how much hunger the ********** wiuld have been celebrating as Lungu’s failures if the Donkeys had their way with army worms. Fortunately the army worms and their sponsors were roundly defeated. Though I admit that I am surprised/shocked that ********** have not gone to Courts to petition the defeat of army worms. I mean these donkeys just love Courts hey!

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    • Hehehehe

      Look at the dum kaponyas ati

      ” lungu defeated army worms…..”

      Hehehe you can not but laugh.
      A small crop infestation ati defeated army worm……defeat unemployment , poverty and corruption you dum as.ses

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  9. It Shows Lungu Is Being Mislead And Kicked Like A Ball To Whichever Direction It Feels Like.
    Dora Already Said, As At Now We Have 3.6Million Tonnes, And People Are Still Harvesting. This Not The Final Figure. And We Are Expected To Remain With Excess Of Over 1.8 Million Tonnes. How Are The Farmers Going To Export If U Raise The Standard Of Living? Ok Pela Bring Manufacturing Industuries To Process The Crops Kaili….
    Its Only The Millers And Middlemen That Benefit Frm Your Fake Policies. While The Actual Farmers Still Remain Volnerable. I Wonder How U Use Yo Huge Loans Failing To Put Manufacturing Industries.

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  10. @2.1 Twende, you ********** have changed your goal posts again. Initially to revognise Lungu you said the dead “petition” must be “heard”. Now if Lungu governs well you can recognise him? Did you consult donkey nkombo or have you parted company? Maybe you are a breakaway of the now leaderless UPNDonkey “party”? Anyway we dont care anout your “recognition”, its neither here nor there for us he majority who voted for Lungu. As far as we are concerned there is a President in Zambia and as a result we have our place at the AU and the UN. No time to waste arguing with all breeds of donkeys. Just make sure that you dont break the laws of Zambia, or else Mukobeko will wait for you.

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  11. Lungu ordered the arson attacks across the country hoping the treason charge against HH will be justified.

    But when he realised no one was blaming HH, and investors were fearing fires he ordered a stop to the staged attacks.

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  12. Can the nation see the arson attackers who PF say they arrested ????

    There are no arrests because it was PF starting those fires hoping to justify the treason arrest of HH.

    That is the desperation of lungu.

    No peacefull protest or peacefull solidarity rallies by UPND are permitted, infact not more that 2 UPND officials are allowed to meet.
    Just the other day headmen in SP attending a development meeting were all arrested and accused of plotting against PF.

    What is lungu afraid of ????

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  13. Has Mr Felix Mutati become a supervisor of other Ministers in Government because he’s all over the show…It’s only the Republican President or his Vice President who can overlap and not the Finance Minister…People who talk too much are not performers, Mr Mutati is the same as bashi Nono…

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  14. This so called president would rather hold hard working farmers hostage to the 10% tax until they deliver. That is wisdom from Wisconsin and wine from Wannabe – stale and tasteless.

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  15. A personal track record of success is a very important pre qualification for anyone wishing to ascend to the highest office in the land. It is very clear someone doesn’t understand how the economy works. Zambians must also learn how to choose leaders. It is not enough to look humble! We must learn to do as Americans do – parade aspiring candidates in a debate and ask them tough questions to see who has what it takes to deliver. The process must be made more rigorous so that riffraffs are sieved out. We must also come up with a better mechanism of keeping presidential powers in check. The entire nation of millions should not be made to be at the mercy of a leader who chooses to be a tyrant! A recall mechanism is required for all presidents who can’t protect our democracy, freedoms and…

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  16. A recall mechanism is required for all presidents who can’t protect our democracy, freedoms and all human rights!

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  17. Mr President.

    With a projected harvest of 3,6m tons, our agricultural marketing system has collapsed. Maize has crashed to K40 per bag from an average of K100 last year. Soya has dropped from K4,50 per kg to K1,80 at present.

    If we cannot handle this over-production, why bother setting targets for even more ?

    BTW. Zimbabwe, Malawi, SA, all have excess maize. There is no market and you have been disillusioned by the demand from the 2016 drought. Now reality has set in !

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  18. Imagine when FRA sets their price (last year it was K85 per bag of maize).

    Every peasant farmer will make his way to the FRA depot. FRA wishes to purchase only 500,000 tons whereas there is a potential over supply of 1,5m tons !!!

    How will you choose whose maize to take ?

    And now comes the point ! How will FRA pay when GRZ is broke to the point of begging from the IMF.

    Wait and See.

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  19. They are trying to squeeze more value out of the Zambian economy so they can pay back the eurobonds and other debt they have run up.

    The society that comes with an IMF driven economic policy is one of repression and lack of representation of the electorate.

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