THE price of bread has gone up to RTGS$2,30 from RTGS$2
with millers saying the increase is not associated with the cost of flour as
the price of the product has remained constant.
Yesterday, bread, which has been in short supply in the
country over the past few weeks, was being sold for RTGS $2,30 per loaf at most
outlets in Bulawayo’s Central Business District.
It was going for as much as RTGS$2,50 in high density
suburbs. However, some supermarkets that bake bread as well as small bakeries
are selling it at between $1,60 and $2 per loaf.
Bakers Inn was giving its customers the option to buy a
loaf for US$0,60 while demanding $2,30 per loaf for those paying in bond notes.
Lobels and Proton bread was also going for RTGS $2,30 per loaf.
Grain Millers’ Association of Zimbabwe (GMAZ) chairperson
Mr Tafadzwa Musarara said the price bread hike had nothing to do with an
increase in price of wheat.
He said bakers increased the price of bread before
Government announced an increase in the price of wheat on Tuesday.
“The GMAZ has noted the recent increase in bread prices.
These bread price increases are, however, not in any way associated with flour
cost drivers as the product supply price to bakers has remained constant since
the new price of bread was gazetted. Cabinet announced an increase in the price
of flour yesterday (Tuesday), however bakers had already increased the price of
bread. This increment has nothing to do with the price of flour because as GMAZ
we had not increased the price of flour and they were still getting it from us
at the same price,” Mr Musarara said.
“This increase may be a result of other production costs in
the baking industry and logistics and not flour. We are currently consulting on
how we can work around the new price of flour, to ensure that it does not
affect the price of bread so that the price of bread will remain the same.”
Bakers’ Association of Zimbabwe President Mr Ngoni Mazango
said he was not aware that some bakers had increased the price of bread, adding
that the increase was not official.
“Our official position as BAZ is that the price of bread is
still $2 for a standard loaf. However, I cannot answer on behalf of individual
bakeries. As you are well aware, government has announced new prices for grain
crops. We are yet to consult each other and come up with something tangible as
far as price reviews are concerned,” he said.
Scores of people in Bulawayo were seen queueing for
in-house baked bread at different supermarkets as it was cheaper.
A loaf of bread at OK Zimbabwe baked in the supermarket was
going for $1,80.
Members of public who spoke to The Chronicle urged
Government to intervene.
“The cost of living continues to go up. Today it’s bread
that has gone up but tomorrow it could probably be something else. We appeal to
Government to come up with measures that will ease the burden. Some of us have
big families. We need more than one loaf and the new price means we won’t be
able to buy bread,” said Mrs Conciliar Mthunzi.
The bread price hike comes at a time when Government has
revealed that it is working on safety nets to cushion citizens against price
distortions on basic commodities.
Government on Tuesday set new producer prices for various
crops for the 2019-2020 farming season reflective of the current economic
situation in a development that is expected to help farmers to execute their
agricultural business. Wheat is one of the commodities that had an upward price
review.
The announcements were made by the Minister of Information,
Publicity and Broadcasting Services Cde Monica Mutsvangwa.
“Cabinet approved the proposal by the Minister of Lands,
Agriculture, Water, Climate and Rural Resettlement to review the producer prices
for maize, small grains, wheat, soya beans and cotton as follows: Maize and
small grains, RTGS$726 per tonne, wheat RTGS$1 089,68, soyabean, RTGS$918 and
cotton RTGS$1 950 per tonne,” said Minister Mutsvangwa.
“Cabinet also approved that the 38,5 percent subsidy on the
selling price to millers be maintained in order to prevent increases in the
retail prices. In US dollar terms, the prices are now aligned to the import
parity prices in the region.
“Cabinet received a preliminary cereal sufficiency report
for the 2018/2019 agricultural season from the Minister of Lands, Agriculture,
Water, Climate and Rural Resettlement. The report showed that cereal production
in 2018-2019 is projected at 714 598 tonnes of cereal grains. This excludes
what we have in the Strategic Grain Reserve at GMB. Government is taking steps
to ensure that national food security is guaranteed.” Chronicle
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