eBusiness Weekly
Kudakwashe Mhundwa
HARARE – The Grain Millers Association of Zimbabwe yesterday announced maximum wholesale and retail prices for maize, rice and salt produced by its members across the country, which are aimed at curbing the recent speculative pricing regime.
This comes as the country is witnessing astronomical increases of basic commodity prices which have been fuelled by parallel black market rates and worsened by panic buying during the past few weeks.
Subsequently, the miller’s representative body has listed three products, which include mealie-meal, rice and salt under their price recommendations.
In a statement, GMAZ National Chairman Tafadzwa Msarara said, “The apex representative body of the milling industry, is worried by the pricing speculative regime that has seen prices of staple foods surge within some quarters in the distribution chain.
“In an attempt to maximise consumer purchase value this festive season, GMAZ, at its ordinary meeting on Tuesday 27 November 2018, received, accepted and endorsed a report from its technical committee on Finance and Costing. Accordingly, with effect from 1 December 2018, the following maximum prices of our staple products are hereby recommended,” said Msarara
According to GMAZ, roller meal 5kg packet’s wholesale price is $3,27, retail price is $3,85; 10kg $6,51 (wholesale), $7,16 (retail); 20kg $12,69 (wholesale) and $13,96 (retail). Rice (par boiled 2kg) $6,61 and $7,49 wholesale and retail respectively, Value White Rice 2kg $6,61 and $7,49. Fine salt 1kg $1.68 and $1,89 wholesale and retail respectively while course salt 2 kg $2,52 (wholesale) and $2,79 (retail).
Mr Musarara indicated that despite cost pressures currently being experienced in flour production the bulk of cost increases have been adopted by millers.
“In light of serious cost pressures currently experienced in flour production arising from non-wheat expenditures, price of bread and flour has slightly increased from $36,50 per 50 kg to $39,65 per 50 kg. This translates to an increase of 3 cents per loaf. However, the bulk of the costs have been absorbed by millers,” he said
This, however comes at a time when the country is battling with wheat supplies as grain millers are failing to secure adequate foreign currency allocations from the Reserve Bank of Zimbabwe for importation.
GMAZ are on record saying they have a consignment of 30 000 tonnes of wheat meant for baking flour currently stuck at Beira, Mozambique, after they failed to access foreign currency amounting to $12,2 million from the Reserve Bank of Zimbabwe(RBZ) to pay for the grain.
Mr Musarara said the industry requires $12,2 million every month for importation of adequate wheat supplies for production of baking flour.
Zimbabwe is currently in the throes of a biting foreign currency crisis as demand for foreign currency far outweighs supply because the economy, particularly with regard to exports, is not performing optimally while other sources such as foreign investments and lines of credit are dry.
