Business / Local
Bakers warn of a looming bread price increase
15 Aug 2012 at 06:24hrs | Views
The Bakers' Association of Zimbabwe (BAZ) has warned of a looming bread price increase following a recent sharp increase of import duty on flour and flour products.
BAZ president Dumisani Moyo yesterday alleged that members of his organisation were contemplating hiking the price of bread from the current $1 a loaf for them to remain afloat, NewsDay reported.
The government recently hiked import duty on flour from 5% to 20%, prompting millers to increase flour prices from $680 to between $710 and $740 per tonne.
"The prices of flour have hiked due to the imposition of duty on imported bakeries consumables. The duty rose from 5% to 20%. This has also increased the input cost on duty-based flour products," Moyo said.
"Local millers had promised to provide flour at $680 per tonne, but they are selling it at between $710 and $740. That has pushed flour prices up and most likely the prices of bread would follow suit."
Moyo said his executive would meet Finance minister Tendai Biti today to discuss the matter.
"We are going to have a meeting with the Minister of Finance Tendai Biti so as to map the way forward and decide on which alternative we should take concerning this matter," he said.
BAZ president Dumisani Moyo yesterday alleged that members of his organisation were contemplating hiking the price of bread from the current $1 a loaf for them to remain afloat, NewsDay reported.
The government recently hiked import duty on flour from 5% to 20%, prompting millers to increase flour prices from $680 to between $710 and $740 per tonne.
"Local millers had promised to provide flour at $680 per tonne, but they are selling it at between $710 and $740. That has pushed flour prices up and most likely the prices of bread would follow suit."
Moyo said his executive would meet Finance minister Tendai Biti today to discuss the matter.
"We are going to have a meeting with the Minister of Finance Tendai Biti so as to map the way forward and decide on which alternative we should take concerning this matter," he said.
Source - newsday
