In keeping with the global trends the majority of agricultural marketing schemes and control boards have been phased out. The agricultural markets have been liberalised and access to them broadened through legislation. As a result, farming has become market-driven and not productiondriven, and this naturally leads to greater agricultural price volatility.
The removal of these marketing boards should create space for competition, but we are only beginning to see some encouraging signs that farmers are reacting appropriately to the new agricultural policies. As a central bank we continue to be encouraged by what we hear from the government.