Price of bread drops

03 Jul, 2020 - 12:07 0 Views
Price of bread drops

The Sunday News

Dumisani Nsingo, Senior Business Reporter
THE price of bread is expected to drop from over $70 a loaf to $66 following reduction in the price of flour, an official said.

In a statement Grain Millers Association of Zimbabwe (GMAZ) chairman Mr Tafadzwa Musarara said the price of flour has dropped from $ 3, 150 per 50 kilogramme to $2, 136.89.

“Consequently, the bakers have committed to reduce the price of a standard loaf of bread from wholesale price of $70.00 and retail price of $79.00 to wholesale price of $59.00 and retail price $66.00. From now on, our prices will be guided by the Foreign Currency Auction outcomes,” he said.

GMAZ said the increase in the price of flour and subsequently the amount of bread was largely due to the fact that most millers were now importing wheat using their own free funds and the instability that has been prevailing on the exchange rate of late.

“In May 2020 GMB (Grain Marketing Board) advised millers that they had run out of wheat and millers had to import on their own to meet market requirements.

This led millers to resume imports using free funds. Regrettably, the price of bread flour could not be stabilised as before as it was now susceptible to vagaries of moving rate,” it said.

Consequently, in the past eight weeks, bread price of $ 79 per standard loaf of bread largely on account of flour. Equally affected was also the rest of confectionery and biscuit products.

“Admittedly, the price of bread, a necessity in all households, had become expensive and indeed worsened the cost of living. Following the re-establishment of the Foreign Currency Auction System by Reserve Bank, GMAZ has had fruitful discussions with the RBZ Governor, Dr (John) Mangudya, whereupon foreign currency allocations to millers are now being made,” said GMAZ.

It further said its members would continue private wheat imports to ensure adequate national supplies between now and December.


Share This: