New Zimbabwe.com

Basic commodities to skyrocket as govt increases maize and wheat prices

By Staff Reporter


PRICES of basic commodities including flour and bread are likely to rise after the government increased maize and wheat prices.

The Grain Millers’ Association of Zimbabwe (GMAZ) last week said government had increased maize and wheat prices to millers by 86% and 38% respectively.

In a statement, GMAZ spokesperson, Garikai Chaunza said the staple maize has now been pegged at $1 300 per tonne, up from $700 while wheat went up from $1 600 per tonne to $2 200.

“In as much as we (millers) have no problem with these price increases, we however foresee maize-meal and flour-related products going up in the near future as a result of these margins,” said Chaunza.

Prices of basic commodities have been going up rapidly as the local currency continues to lose value.

Retailers in most cases peg their prices in line with the prevailing parallel market foreign exchange rate as the official rate remains managed by government.

In April, government approved the increase of producer prices of most grains including wheat and maize.

However, to cushion citizens struggling to make ends meet, authorities also approved a 38.5% subsidy on the selling price to millers to prevent increases at retail level.