THE price of bread is set to drop before the end of the year as the Government has put in place measures to ensure the cost of a standard loaf returns to US$1.
By Costan Rutsate
On account of the global commodities crisis triggered by the Russia-Ukraine conflict and other factors, the retail price of bread shot up earlier this year to about US$1,20.
The country, however, expects a record wheat output of up to 400 000 tonnes, resulting in the projected reduction of the wheat import bill.
Addressing journalists on Friday, Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka said as wheat harvesting intensifies, the price of bread will inevitably fall.
“To cushion consumers with affordable flour and bread, the price of wheat to millers by the Grain Marketing Board (GMB) will be reduced by 4,4 percent from US$680 per metric tonne to US$650 per metric tonne, payable in the ratio of US$33:$67 (33 percent payable in US dollars and 67 percent in local currency).
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“The price also takes into consideration macroeconomic fundamentals and the likely impact of the floor price on the exchange rate, and the price of commodities such as flour and bread,” said Dr Masuka.
Wheat and wheat flour imports, Dr Masuka said, will be suspended, as the country anticipates self-sufficiency in domestic requirements. Grain Millers Association of Zimbabwe chairperson Mr Tafadzwa Musarara explained the mechanics behind the expected drop in the price of bread.
“With the bumper harvest that has a surplus to our local requirement, it means we are going to export some of our soft wheat in return for the 30 percent hard wheat, which is a smart way of doing business because we will not need foreign currency to import.
“What this means is, once we have enough flour at a reduced price as tabled by the Government, the flour price and bread price will eventually drop,” he said.
On Friday, Dr Masuka announced prices of wheat pegged in US dollars to preserve the value of wheat throughout the season, with ordinary grade of wheat slated at US$620 per tonne while premium grade is US$682.
