67% wheat price hike set to trigger fresh bread price increase

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By Staff Reporter

HARD-PRESSED Zimbabweans can brace for fresh bread price increases after government cereal stocker, Grain Marketing Board (GMB) has increased the price of wheat to millers by 67%.

Grain Millers Association of Zimbabwe, media and public relations manager Garikai Chaunza has admitted the increase was too exorbitant.

Because of the margin, Chaunza said, millers were not in a position to absorb the costs that come with any other increase.

“We see the margin as being too high whose costs we cannot afford to absorb,” Chaunza said.

Millers were previously accessing local wheat at ZWD3548.00 per metric tonne from the GMB.

A standard loaf of bread is costing ZWD14.85.

Baking companies September this year increased the price of bread by 39%, a day after the government had hiked the cost of wheat by a similar margin.

At the time, a loaf of bread cost $6.80 but was increased to $9.45 as a result of the increase.

This had been prompted by a wheat price hike to $2,200, up from $1,600.

Zimbabwe’s milling industry has not been sparred the current harsh economic environment that has seen prices of goods and services increase rapidly almost every day.

The Emmerson Mnangagwa led government insists these were symptoms of an economy that was going through turbulent re-transformation and soon the storm would be over.