News / National
Millers blast bakers over bread price
29 Oct 2018 at 01:36hrs | Views
The Grain Millers Association of Zimbabwe (GMAZ), which represents the country's major milling companies, has said bakers' decision to unilaterally increase the price of bread from $1.10 to $2.20 is unjustified since bread flour price has not increased.
Last Friday Lobels regional sales manager Mr Zenzo Malunga sent a memo to OK Zimbabwe advising that the wholesale price of a loaf of bread had increased to $2 and the retail price adjusted to $2,20 from $1,10 owing to the rise in cost of raw materials and lack of foreign currency.
GMAZ Chairman, Mr Tafadzwa Musarara said in a statement yesterday that millers have been receiving a nostro payment support from the Reserve Bank of Zimbabwe hence they still charge US dollar at par with Bond notes.
"Since the previous bread price increase a month ago from $1 to $1,10 per loaf, wheat bakers flour prices to bread bakers has not increased. The current wheat bakers flour prices to bakers is indexed on 1:1 on the US$ to Bond," he said.
"GMAZ therefore wishes to make it categorically clear to the authorities and the consumers that it is impossible to attribute any bread prices to bakers' flour price increase, which is the main ingredient."
Mr Musarara said the bakers did not consult millers before imposing a new price as per their custom.
"The latest increase of bread price came as a shock to the wheat milling industry as the millers were not notified in advance or consulted on the matter prior to publication of the hiked prices as it is the custom and norm," said Mr Musarara.
"We urge our colleagues in the baking industry to observe standing consultations and notifications protocols should there be a need to increase bread prices in future."
The Minister of Industry and Commerce Mangaliso Ndlovu soon after the announcement of the new bread prices ordered the bakeries to revert to the old price of $1,10 saying the $2,20 would make bread unaffordable.
National Bakers Association of Zimbabwe president Mr Ngoni Mazango told The Sunday Mail that as an industry, they have a challenge of foreign currency since they are not getting enough (foreign currency) allocations from the Reserve Bank of Zimbabwe, President Mnangagwa last week said Government will not allow business to unjustifiably increase prices, neither will it tolerate saboteurs manipulating the market to create artificial shortages of goods.
Last Friday Lobels regional sales manager Mr Zenzo Malunga sent a memo to OK Zimbabwe advising that the wholesale price of a loaf of bread had increased to $2 and the retail price adjusted to $2,20 from $1,10 owing to the rise in cost of raw materials and lack of foreign currency.
GMAZ Chairman, Mr Tafadzwa Musarara said in a statement yesterday that millers have been receiving a nostro payment support from the Reserve Bank of Zimbabwe hence they still charge US dollar at par with Bond notes.
"Since the previous bread price increase a month ago from $1 to $1,10 per loaf, wheat bakers flour prices to bread bakers has not increased. The current wheat bakers flour prices to bakers is indexed on 1:1 on the US$ to Bond," he said.
"GMAZ therefore wishes to make it categorically clear to the authorities and the consumers that it is impossible to attribute any bread prices to bakers' flour price increase, which is the main ingredient."
Mr Musarara said the bakers did not consult millers before imposing a new price as per their custom.
"The latest increase of bread price came as a shock to the wheat milling industry as the millers were not notified in advance or consulted on the matter prior to publication of the hiked prices as it is the custom and norm," said Mr Musarara.
"We urge our colleagues in the baking industry to observe standing consultations and notifications protocols should there be a need to increase bread prices in future."
The Minister of Industry and Commerce Mangaliso Ndlovu soon after the announcement of the new bread prices ordered the bakeries to revert to the old price of $1,10 saying the $2,20 would make bread unaffordable.
National Bakers Association of Zimbabwe president Mr Ngoni Mazango told The Sunday Mail that as an industry, they have a challenge of foreign currency since they are not getting enough (foreign currency) allocations from the Reserve Bank of Zimbabwe, President Mnangagwa last week said Government will not allow business to unjustifiably increase prices, neither will it tolerate saboteurs manipulating the market to create artificial shortages of goods.
Source - chronicle
