Protect local producers, Govt told

BUUMBA CHIMBULU writes GOVERNMENT should consider increasing import duty on locally produced agricultural products to create market for farmers whose merchandise go to waste. Increasing import duty on such products will protect smallholder businesses and their markets, says Jesuit Centre for Theological Reflection (JCTR). JCTR observed that many fruits and vegetables were imported which and […]

Protect local producers, Govt told
BUUMBA CHIMBULU writes GOVERNMENT should consider increasing import duty on locally produced agricultural products to create market for farmers whose merchandise go to waste. Increasing import duty on such products will protect smallholder businesses and their markets, says Jesuit Centre for Theological Reflection (JCTR). JCTR observed that many fruits and vegetables were imported which and yet they could be grown locally. The Centre said it was for this reason that Government should consider increasing taxes on imported agricultural products that can be farmed locally. According to JCTR proposal for the 2021 National Budget submission to Ministry of Finance, local farmers lack market for their produce and product goes to waste. This, JCTR said, promoted capital flight, which continued to persist and may lead to a balance of payment deficit in accordance to national accounts. JCTR indicated that the measure would support the growth and development of the Small Medium Enterprises (SMEs). “This will result in increased production, employment and Government revenue. In addition this will also go towards achieving Sustainable Development Goals (SDG) and Seventh National Development Plan (7NDP),” It indicated. On value addition, JCTR proposed that Government should support and provide incentives to private sector participation, especially to farmer owned value addition enterprises, marketing and other areas in the food chain. “We need more private sector players in agriculture commodity marketing and value addition just like Government has attracted a good number of them in agro input supply,” it stated. JCTR indicated that the measure would promote employment creation and retention of youths in rural areas especially where there is comparative advantage for such value addition enterprises. It noted that no Government incentives were widely available to promote value addition in the agriculture sector, stating that value addition was key for the private sector to create demand for commodity Once this was implemented, they would be less dependence on Government to buy commodities from farmers. “They will be increased income for farmers and an increment in employment which will in turn result into revenue for Government through different tax types,” JCTR indicated. The Sun