The Zambia National Farmers Union has called on Government to revoke the 10% export tax on maize grain as it discourages exports.
ZNFU President, Jervis Zimba says the Ministry of Agriculture should honour the promise it made to remove the tax if the national harvest exceeds 2.2 million metric tons as the country is expected to harvest 3.6 million tonnes of maize. Mr. Zimba says removal of the tax will make maize grain an attractive commodity to trade in and help the country avoid oversupply on the domestic market.
Mr. Zimba says the ZNFU recognizes that value addition is important in improving foreign exchange but, that there is a compelling case in favour of the export of grain as certain markets demand for it. He also opposed the decision by government that export of maize will be done through the Millers and the World Food Programme saying the strategy will not tap into the regional markets in an optimal way.
Mr. Zimba also argued that governments’ decision to export maize through Millers and the World Food Programme will not tap into the regional markets in an optimal way and instead proposed for a change in policy because, Zambia is not the only producer of maize in the region.