Business / Economy
Prof Ncube to meet bakers over bread price
02 Sep 2012 at 08:08hrs | Views
Industry and Commerce Minister Professor Welshman Ncube is expected to meet representatives of the National Bakers' Association of Zimbabwe (NBAZ) to determine whether their proposal to increase the price of bread from US$1 per loaf to US$1,20 is justified, The Sunday Mail reported.
Prof Ncube told The Sunday Mail yesterday that stakeholders would soon set a date on which to meet and discuss the matter.
"We will determine whether it is justifiable to increase the price of bread. This will be done when we meet the bakers' association as well as other stakeholders," he said.
"They will present their facts and concerns after which the way forward will be determined."
Bakers are pushing for an upward bread price review, citing rising costs of flour precipitated by high import duty and operational expenses.
Finance Minister Mr Tendai Biti has already said any bread price hike would fuel inflation. However, the bakers maintain they will be forced to pass the cost on to the consumer if duty is not cut from 20 to 5 percent.
Association president Mr Dumisani Moyo said: "We met other baking industry stakeholders and came up with two resolutions. These are either the increased duty on flour imports will be scrapped or the nation braces for an increase in the price of bread.
"The minister (Mr Biti) was simply giving his opinion. That does not necessarily mean the price of bread will not go up if it were necessary. If you remember, the minister said nothing justifies the bread price increase, meaning either of the two resolutions may be passed after we present our case to the Ministry of Industry and Commerce."
Grain Millers' Association of Zimbabwe chairman Mr Tafadzwa Musarara recently dismissed the NBAZ proposal, saying bread production costs are absorbable.
"We have increased the price of flour by 6 percent because of the increase of wheat prices world­wide. However, this does not warrant the baking industry in Zimbabwe to increase the price of bread.
"That does not really make a difference and can be absorbed. For now, there is no reason to increase the price of bread."
Prof Ncube told The Sunday Mail yesterday that stakeholders would soon set a date on which to meet and discuss the matter.
"We will determine whether it is justifiable to increase the price of bread. This will be done when we meet the bakers' association as well as other stakeholders," he said.
"They will present their facts and concerns after which the way forward will be determined."
Bakers are pushing for an upward bread price review, citing rising costs of flour precipitated by high import duty and operational expenses.
Finance Minister Mr Tendai Biti has already said any bread price hike would fuel inflation. However, the bakers maintain they will be forced to pass the cost on to the consumer if duty is not cut from 20 to 5 percent.
"The minister (Mr Biti) was simply giving his opinion. That does not necessarily mean the price of bread will not go up if it were necessary. If you remember, the minister said nothing justifies the bread price increase, meaning either of the two resolutions may be passed after we present our case to the Ministry of Industry and Commerce."
Grain Millers' Association of Zimbabwe chairman Mr Tafadzwa Musarara recently dismissed the NBAZ proposal, saying bread production costs are absorbable.
"We have increased the price of flour by 6 percent because of the increase of wheat prices world­wide. However, this does not warrant the baking industry in Zimbabwe to increase the price of bread.
"That does not really make a difference and can be absorbed. For now, there is no reason to increase the price of bread."
Source - SM
