Bread prices drop to $66 today for a standard loaf from
between $71 and $80, following an agreement yesterday that millers can buy the
currency to import wheat from the Reserve Bank of Zimbabwe at the auction rate.
In future bread prices will track the auction rate, making
bread the first non-subsidised essential product where prices will track the
auction rate, not the black-market rate.
Bread prices started soaring in May this year when Grain
Marketing Board (GMB)advised the Grain Millers Association of Zimbabwe that GMB
had run out of wheat and millers had to import using free funds.
Millers then priced flour using the black market rate.
Over the past eight weeks, bread prices moved from $18 for
a standard loaf, when wheat was imported at a GMB price, to the current $71 to
$80 depending on how shops applied mark ups.
Cakes and similar items, and biscuits, that are largely
baked from wheat flour, also increased in price.
Addressing the media in Harare yesterday, chairman of GMAZ
Mr Tafadzwa Musarara said from yesterday, the prices would be guided by foreign
currency auction prices.
“The price of bread, a necessity in all households had
become expensive and indeed worsened the cost of living. Following the
re-establishment of the foreign currency auction system by the RBZ, GMAZ has
had fruitful discussions with the RBZ Governor Dr John Mangudya whereupon
foreign currency allocations to millers are now being made.
“As a result, on behalf of wheat millers, I am pleased to
advise that the cost of bread flour, with effect from July 3, 2020 has been
reduced from $3 150 per 50 kilogrammes to $2 136,89.
“Consequently, the bakers have committed to reduce the
price of a standard loaf of bread from wholesale price of $70 and retail price
of $79 to wholesale price of $59 and retail price of $66. From now on, our
prices will be guided by the foreign currency auction outcomes,” Mr Musarara
said.
He said GMAZ would continue with private wheat imports to
ensure the nation has enough supplies.
Bakers Association of Zimbabwe president Mr Dennis Wallah,
however, professed ignorance of the development saying he was yet to get the
communication. Herald
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