Home » Business » Flour Prices Slashed 10 Percent

The price of bread and other flour products is likely to go down significantly after the Grain Millers Association of Zimbabwe (GMAZ) reduced the price of flour by 10 percent.

The move by the millers is in response to calls by Government for industry to adjust pricing models downwards.

Innscor has already reduced the price of bread by Baker’s Inn from $1 to $0,90 and the latest move by the GMAZ is likely to see consumers benefiting more.

GMAZ president Mr Tafadzwa Musarara said the millers would continue finding ways to ensure fair and affordable prices for Zimbabweans.

“Pursuant to the previous meetings held with the Reserve Bank of Zimbabwe Governor Dr John Mangudya on the reduction and stabilisation of prices of staple foods, particularly bread, I am pleased to announce that the milling sector has reduced the price of bread flour by 5-10 percent,” said Mr Musarara.

“We are hopeful that our colleagues in the sugars, fats and baking aids industries will consider making similar adjustments so that bakers adjust prices of bread downwards with the same corresponding margins,” he said.

The Bakers’ Association said they would meet to assess the situation on the ground and react accordingly.

“We welcome the price reduction on flour, but flour is one of the many components that go into bread making. As stakeholders, we will have to meet and assess the situation on the ground and react accordingly,” Bakers’ Association president Mr Givemore Mesoemvura said on Friday.

If bakers respond by reducing bread prices, it will be the second time bread prices have been slashed this year. In March bread makers reduced prices to 85 cents from 90 cents in line with submissions from Government and the RBZ for the readjustment of prices.

Government’s call is part of wider mechanisms to enhance domestic economic competitiveness to curb pressure for increased wages.

The move followed similar cuts in the prices of beer, soft drinks and mobile phone tariffs.

Government is in the process of addressing the doing business environment to enable enterprises to be competitive against their regional counterparts.

The RBZ governor recently said the country should review its uncompetitive pricing model.

The introduction of bond coins was one of the measures Government adopted to curb overcharging and abuse of consumers.

Since Zimbabwe is using other countries’ currencies, it has no option of enhancing competitiveness such as currency devaluation.

The only viable option available will be striving to reduce the price of local products in US dollar terms.

Source : The Herald

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