NMC Announces Exhaustion of Tractor Hire Subsidy Programme Budget

By Sizwe Dlamini

The CEO of the National Maize Corporation (NMC), Mavela Vilane, has announced that some farmers will no longer benefit from the Government Tractor Hire Subsidy Programme, as the allocated budget for the 2024/2025 financial year has already been exhausted.

The announcement was made during a press briefing held at the NMC boardroom at Matsapha. Vilane explained that the budget for the subsidised tractor hours for the current financial year, which ends on April 30, amounted to E10 million, equivalent to 55,555 tractor hours. However, by the close of business on Monday, NMC had registered a total of 58,862 tractor hours, exceeding the allocated subsidy by 3,306 tractor hours. This has resulted in a budget overrun of E595,080.

Despite the exhaustion of the subsidised hours, Vilane reassured farmers that the tractor hire service will continue to be available to farmers, but they will now be required to pay the full cost of E580 per tractor hour, instead of the previously subsidised rate of E400.

“We sympathise with our farmers for all the challenges that they have faced during this ploughing season, including extreme weather conditions such as late rainfall, heatwaves, storms, and even floods. These challenges have undoubtedly impacted the national maize outlook for the 2024 season,” Vilane stated.

However, Vilane also used the opportunity to commend the resilience of local farmers, urging them to continue their efforts in grain production to help ensure national food security, particularly for those with access to irrigation systems. Vilane then emphasized the importance of the agricultural sector in shaping national staple food sovereignty and encouraging ongoing support for the industry.

In addition to maize, Vilane encouraged farmers to explore opportunities in legume farming, as the bean planting season is approaching. He urged farmers to work closely with extension officers at their nearest Rural Development Areas (RDAs), who are equipped to offer guidance and support for all farming activities.

“The Corporation appreciates the continued support and understanding of all stakeholders as we work together to create a vibrant grain industry capable of meeting national demand, building reserves, and expanding into export markets,” Vilane concluded.

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