Agriculture Minister Michael Katambo is expected lead his ministry and technical staff to set an average selling price of mealie meal by millers to retailers at between ZMK115 to ZMK120, while roller meal should be sold between ZMK80 to ZMK90.
This follows revelation that the state has information that the high maize buying price prevailing in the private sector are driven largely by the 3 major manufacturers of livestock feed who are procuring maize at exorbitant prices, to make stock feed cake for export which is fetching favorable prices”.
Chief Government’s spokesperson Dora Siliya said in a statement made available to the Zambian Business Times – ZBT that government has expressed great concern over the high price of mealie meal which is reported to have reached K150 for 25kg bag of breakfast and ZMK120 for a 25kg bag of Roller meal in some cases and parts of Zambia.
She said, Acting President Inonge Wina had this morning summoned Hon Katambo to urgently meet major retail outlets to address the price distortion.
Katambo is however expected to meet with manufactures of livestock feed to arrest the price distortion in the maize buying market and conclude interventions by Government to stabilize the price of Mealie meal and make the staple food affordable to ordinary Zambians in the next few days.
“Government is also aware of price distortions in the maize buying market. While the Food Reserve Agency (FRA) buy-in price is ZMK110 per 50Kg of maize, the private sector price is as high as ZMK170 per 50kg bag of Maize. This too is clear distortion because historically the price difference between FRA and the private sector has never been more than ZMK10 per bag. However, this year the difference is as high as ZMK60,”.
“Our information is that what is driving the high maize buying price in the private sector are the 3 major manufacturers of livestock feed who are procuring maize at exorbitant prices, to make stock feed cake for export, at the expense of ordinary Zambians,” She said.
Siliya has however assured Zambians that despite the country being impacted by drought and floods in some areas, it is food secure and will do everything possible to ensure it remains so to avoid dearth from hunger.
Government has further instructed the Competition and Consumer Protection Commission – CCPC to render a report to Government on the price distortions within 24hrs. And in a separate interview with ZBT, Agriculture Minister said his ministry will engage its stakeholders on the recommended price on the market hence assurance will be made after meeting stakeholders in the maize industry.
He said the ministry will soon make a public announcement on recommendations made by government regarding the price of Mealie meal on the market.
Analysts have however noted that the price of maize has been escalating following the announcement of the increased maize purchase price by the state food reserve agency – FRA following the upward adjustment in response to cries from small scale farmers that account for over 90% of total maize production in Zambia.
The demand in neighboring countries for Maize has further exacerbated the situation with the vast export market in the Democratic Republic of the Congo – DRC offering almost double the price of the local prices in Zambia. Zambia had also a reduced output following poor rainfall blamed on climate change effects.
