Bread price likely to go up

Bread prices are likely to rise from US$1 to US$1,20 soon unless there is an immediate drastic downward review of the import duty on flour. The National Bakers' Association of Zimbabwe (NBAZ) last week said it will be forced to pass on the astronomical tariffs and high local flour prices to the con√É‚Äö√Ǭ≠sumer unless the relevant authorities reviewed import duty from 20 to 5 percent.
The association's representatives are expected to meet senior Ministry of Industry and Commerce officials in Harare tomorrow to table their demands. NBAZ president Mr Dumisani Moyo last week said if their demands were not met, then the bread price will  rise.
"As you know, duty on flour imports was increased by 15 percent by Finance Minister Tendai Biti in the Mid-Term Fiscal Policy Review. "Again recently, there was an increase in the price of fuel by 15 and 20 percent and these two are also critical components in the baking industry. Any shift in their prices will obviously affect the price of bread." Mr Moyo said NBAZ was also considering new bread prices following the recent hike in flour prices by the Grain Millers' Association of Zimbabwe.
The price of flour went up from US$680 to between US$710 and US$740 per tonne. "The millers are going back on an agreement we had with them.
"We entered into a social contract with them last year under which they were to sell a tonne of flour for US$680. This was buttressed before the Mid-Term Fiscal Review. "However, they have gone back on their word."