Grain Traders Association of Zambia (GTAZ) has weighed in and supported the proposal to have millers who are buying maize from FRA at subsidized price to print a price tag on the bag of a mealie meal, to prevent creation of a black market and cushion the escalating price of mealie meal.
In an exclusive interview with Zambian Business Times – ZBT, GTAZ Executive Director Chambuleni Simwinga said putting of price tag on the bag is the way to go, to avoid self-prescribed price by the different retailers who are taking advantage of the situation.
“The Tripartite agreement between FRA, GTAZ and the Millers was well coordinated and was done in good faith to reduce the escalating price of the commodity, but it is very difficult when you are dealing with human beings. It is not easy to control the retailers on the right price they are supposed to sell the 25 kg bag, so measure for monitoring need to be put in place’’ said Simwinga.
He said that when the tripartite agreement was made, we also need to take into consideration what the millers are going through, that at that time, there was no hikes in electricity tariffs which is now in place, this hike has now affected the cost of production by the Millers.
Moreover, the newly implemented employment code act and other new labour laws, these have further caused an increase in the cost of production which was also not the case when the tripartite agreement was signed. This has also contributed to the increase in the pricing of the commodity.
Simwinga explained that the factory pricing of a 25 kg bag of mealie meal was agreed at about K130 but that the retail pricing is being exaggerated by some retailers and those that are buying at the recommended prices and later reselling at their own prices, saying the price tag will help reduce the high price of the staple food on the market.
The price of a 25 bag of mealie meal has continued to increase in most parts of the country with some retail outlets a 25kg bag of breakfast mealie meal from K220 to about K185 respectively. The escalating price of mealie meal has so far let to the suspension of stock feed exports to stem maize outflows as an immediate measure.
