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Millers demand repeal of unpublished SI
3 hrs ago |
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THE Grain Millers Association of Zimbabwe (GMAZ) has written to Government demanding the immediate repeal of a statutory instrument introducing new taxes on imported grain, warning that the measures could trigger sharp increases in basic commodity prices.
In a letter addressed to the Ministry of Agriculture, the association argues that the levies, if enforced, will place inflationary pressure on the market and push up the cost of essential goods such as bread, mealie-meal and stock feed.
GMAZ says its projections show that confectionery and staple food prices could rise by as much as 13 percent, directly affecting consumer affordability.
"Our scientific computations, should the levies be applied, shows that the prices of the basic commodities will spike," the letter reads.
The association forecasts that a 10kg bag of roller meal could increase from US$4.60 to about US$5.20, while a 50kg bag of bakers' flour may rise from US$36 to around US$41. Bread prices are expected to increase to at least US$1.15 per loaf, with stock feed costs rising by up to 18 percent, potentially pushing up meat and dairy prices.
The disputed charges are contained in SI 87 of 2025, issued under the Agricultural Marketing Authority (AMA), and apply to imported grain products. The levies include US$89.25 per metric ton for imported soft wheat and hard wheat, US$40 per metric ton for maize, US$20 per metric ton for soya beans, and US$35 per metric ton for soya meal.
GMAZ has described the statutory instrument as unlawful, arguing that it contravenes both the Constitution and the Agricultural Marketing Authority Act.
"We are astounded by the imposition of the levies as they will hit hard on consumer affordability of basic commodities which are essential for the sustenance of life," the association said.
The millers further argue that the minister acted outside his legal mandate by extending levies to imported agricultural products, stating that the law only permits levies on locally produced commodities.
"The Minister has acted outside his province and consequently violates section 298 (2) of the Constitution," the letter states.
GMAZ also criticised the lack of stakeholder consultation, saying the Agricultural Marketing Authority Act requires engagement with industry players before introducing such charges.
The association warned that the new measures come at a time when Government had recently indicated an intention to reduce fees and ease cost-of-living pressures.
It further suggested that the Attorney-General's Office would likely share concerns over the legality of the statutory instrument.
"The levies are unprecedented as they were never imposed since 1890 or in recorded modern history," the letter adds.
A loaf of bread currently retails at about US$1, while a 10kg bag of mealie meal is sold at just under US$5. Analysts say any upward adjustment in grain import costs is likely to cascade through the entire food value chain, affecting households and businesses alike.
In a letter addressed to the Ministry of Agriculture, the association argues that the levies, if enforced, will place inflationary pressure on the market and push up the cost of essential goods such as bread, mealie-meal and stock feed.
GMAZ says its projections show that confectionery and staple food prices could rise by as much as 13 percent, directly affecting consumer affordability.
"Our scientific computations, should the levies be applied, shows that the prices of the basic commodities will spike," the letter reads.
The association forecasts that a 10kg bag of roller meal could increase from US$4.60 to about US$5.20, while a 50kg bag of bakers' flour may rise from US$36 to around US$41. Bread prices are expected to increase to at least US$1.15 per loaf, with stock feed costs rising by up to 18 percent, potentially pushing up meat and dairy prices.
The disputed charges are contained in SI 87 of 2025, issued under the Agricultural Marketing Authority (AMA), and apply to imported grain products. The levies include US$89.25 per metric ton for imported soft wheat and hard wheat, US$40 per metric ton for maize, US$20 per metric ton for soya beans, and US$35 per metric ton for soya meal.
GMAZ has described the statutory instrument as unlawful, arguing that it contravenes both the Constitution and the Agricultural Marketing Authority Act.
The millers further argue that the minister acted outside his legal mandate by extending levies to imported agricultural products, stating that the law only permits levies on locally produced commodities.
"The Minister has acted outside his province and consequently violates section 298 (2) of the Constitution," the letter states.
GMAZ also criticised the lack of stakeholder consultation, saying the Agricultural Marketing Authority Act requires engagement with industry players before introducing such charges.
The association warned that the new measures come at a time when Government had recently indicated an intention to reduce fees and ease cost-of-living pressures.
It further suggested that the Attorney-General's Office would likely share concerns over the legality of the statutory instrument.
"The levies are unprecedented as they were never imposed since 1890 or in recorded modern history," the letter adds.
A loaf of bread currently retails at about US$1, while a 10kg bag of mealie meal is sold at just under US$5. Analysts say any upward adjustment in grain import costs is likely to cascade through the entire food value chain, affecting households and businesses alike.
Source - NewZimbabwe
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