THE government is in the process of putting price guidelines in place for contracted farmers which will be used by the Grain Marketing Board when it buys produce from them, a senior government official has said.
Agriculture, Fisheries, Water and Rural Development deputy minister Vangelis Peter Haritatos told Parliament that the move was not meant to impose prices.
He was speaking during the question and answer session in the National Assembly recently.
“We are not about setting price controls or anything to that effect. What we do, essentially, we announce a price for whatever is contracted to government.
“So, when we talk of Presidential Input Programme or National Agricultural Programme, these are related to government,” Haritatos said.
He said the prices were essentially the ones used by the GMB, adding that the private sector would determine whatever prices that fits it in terms of supply and demand.
“For us, we feel it is right to announce pre-planting prices as well as producer prices so that at least our farmers understand before they even go into that crop.
“During price guideline implementation will bring [together] all stakeholders, farmers, input suppliers and also contractors.
“We are the buyers of grain. We need to announce the prices and the hope is that consumers and the public take that as a guiding price so that our farmers can get similar prices.”
Haritatos said the government was avoiding a situation where farmers are taken advantage of.
“We continue this although in a [somewhat] different format. We believe what we are doing is just complementing and not suppressing any form of market forces,” he said.
