Maravi

Sata rejects bread price hike

Sata rejects bread price hike
By Chiwoyu Sinyangwe
Fri 28 Oct. 2011, 08:40 CAT

THE plans by local bakers to hike the price of bread by K500 are unjustified, says President Michael Sata. According to the special assistant to the President for press and public relations George Chellah, the President has since instructed agriculture minister Emmanuel Chenda to meet all stakeholders in the wheat industry to resolve the impending increase.

"The plans to increase the price of bread will largely hurt the poor," said President Sata, who won the September 20 polls on pro-poor campaign policies. President Sata said the poor consumer bore the brunt of such hikes which were not justified.

"Government will do everything possible to curb exploitation and maintain the price of bread, even if it means authorising the importation of wheat into the country," President Sata said. "We, therefore urge all stakeholders in the wheat value chain to exhaust consultations amongst themselves before taking positions that could undermine consumer interest and that of the industry itself in the long-run."

President Sata said the government would not be blackmailed by any stakeholder in the food chain of essential commodities.

"Government is currently in dialogue with the Zambia National Farmers Union (ZNFU) and the Bakers Association of Zambia regarding measures meant to eliminate unnecessary cost elements so that the wheat industry becomes more competitive," said President Sata.

On Tuesday, Bakers Association of Zambia warned that the price of bread was next week going to rise by K500 as local bakers tried to cope with surging wheat prices which have jumped 100 per cent since last year.

According to BAZ chairperson Aziz Kapdi, wheat prices from US $300 last year to US $600 per tonne this year.

"On behalf of the Bakers Association of Zambia, we regret that we have to increase bread prices by K500 per loaf effective 1st Novermber," Kapdi said in an interview.

Kapdi said soaring wheat prices in the last 12 months have pushed prices of flour, a major input in the bakery industry, from K145,000 per 50 kilogram bag to between K230,000 and K245,000 per 50 kg bag.

"Other costs such as yeast, packaging, and energy have also gone up but up to now the Barkers' association has been restraining its members from hiking prices," Kapdi said. "Flour prices have been increasing fortnightly but barkers have not been increasing prices."

Kapdi said Zambia should lift a lid on importation ban of wheat as the country had the most expensive wheat in Southern Africa Development Community (SADC) region.

Labels: MICHAEL SATA, PRICE CONTROLS

posted by MrK @ 6:05 PM