THE price of bread is set to drop before the end of the year as the Government has put in place measures to ensure the cost of a standard loaf returns to US$1.
On account of the global commodities crisis triggered by
the Russia-Ukraine conflict and other factors, the retail price of bread shot
up earlier this year to about US$1,20.
The country, however, expects a record wheat output of up
to 400 000 tonnes, resulting in the projected reduction of the wheat import
bill.
Addressing journalists on Friday, Lands, Agriculture,
Fisheries, Water and Rural Development Minister Dr Anxious Masuka said as wheat
harvesting intensifies, the price of bread will inevitably fall.
“To cushion consumers with affordable flour and bread, the
price of wheat to millers by the Grain Marketing Board (GMB) will be reduced by
4,4 percent from US$680 per metric tonne to US$650 per metric tonne, payable in
the ratio of US$33:$67 (33 percent payable in US dollars and 67 percent in
local currency).
“The price also takes into consideration macroeconomic
fundamentals and the likely impact of the floor price on the exchange rate, and
the price of commodities such as flour and bread,” said Dr Masuka.
Wheat and wheat flour imports, Dr Masuka said, will be
suspended, as the country anticipates self-sufficiency in domestic
requirements. Grain Millers Association of Zimbabwe chairperson Mr Tafadzwa
Musarara explained the mechanics behind the expected drop in the price of
bread.
“With the bumper harvest that has a surplus to our local
requirement, it means we are going to export some of our soft wheat in return
for the 30 percent hard wheat, which is a smart way of doing business because
we will not need foreign currency to import.
“What this means is, once we have enough flour at a reduced
price as tabled by the Government, the flour price and bread price will
eventually drop,” he said.
On Friday, Dr Masuka announced prices of wheat pegged in US
dollars to preserve the value of wheat throughout the season, with ordinary
grade of wheat slated at US$620 per tonne while premium grade is US$682. Sunday
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