Bread prices to go up, again

BREAD prices are expected to go up again as bakers try to adjust to rising production costs.

BY FIDELITY MHLANGA

Last year, bread prices went up thrice from 90 cents to $1,10 before shooting to $1,40.

In November, government reversed another increase by the bakers, who had pegged a loaf of bread at $2,20.

National Bakers’ Association of Zimbabwe (NBAZ) vice-president Lucky Zinyama told NewsDay that the allocation of foreign currency was still a nightmare, as the central bank was failing to adhere to its promise of allocating 80% of bakers’ forex requirements.

The Reserve Bank of Zimbabwe committed to avail at least 80% of the baking industry’s monthly foreign currency requirements from the previous allocation of 35%.

“We are currently getting pressure from our members, who are saying the cost of producing bread has gone (up) and they want to increase the bread prices. The major challenge now is forex, which is not available. Now, our members will have to go (to) the parallel market,” Zinyama said.

“The initial agreement was that we get 80% allocation from the Reserve Bank of Zimbabwe, but now we are getting just 30% of that. The difference, we have to source on other markets. So our members are giving us pressure to hike prices.”

Apart from the dire forex situation, Zinyama highlighted that the cost of wheat was also adding onto the pressure.

Standard bread flour has gone up from the $730 per tonne in November to $780 per tonne before rising to $835 per tonne on January 1 this year.

Bakers require at least $7 million per month to import raw materials and spare parts.

Effective January 1, bakers are now enjoying duty-free importation of raw materials under a manufacturers rebate introduced by Treasury to reduce the cost of production and minimise increases in the price of bread.

However, bakers insisted that the biggest issue was not free duty, but was access to foreign currency.

“The biggest issue is not about free duty, but it’s the access to forex itself. Duty is a small component of our problem. Of cause, we appreciate the effort, but at the moment, we can’t get forex to import our raw materials,” NBAZ president Ngoni Mazango said.

16 Comments

  1. i think the government should liberalise the forex trading to commerical banks who are the custodians of forex nostro accounts

  2. It is now imperative that the nation moves towards productivity. EAT WHAT YOU PRODUCE; YOU DON’T PRODUCE YOU DON’T EAT. No stealing, corruption or exploitation.

  3. the country is burning

  4. The bakers are receiving foreign currency allocation from the Reserve Bank of Zimbabwe and then demand to raise their bread price. That is very unfair to the citizens.

    Ministry of Industry and Commerce should reign in on these bread makers. They cant just raises their prices will nilly.

    1. If these Bakers are receiving the foreign curency allocation from RBZ and demanding to raise the price of bread what is Mthuli Ncube saying of this what sort of a Minister of Finance is he all this started with him??

    2. when did they last rcv the allocation

    3. thses things of allocating forex etc have became the back bone of our problems. industry has become lazy and corrupt .

  5. Chikokiyana Chinoita Futi

    Bread harina basa iro…why is Delta selling LAGER beers in US$?The same brewers once said they don’t need any forex to produce LAGER beers,bcoz all the raw materials are locally available.

  6. Simon "Chopper" Chimbetu (Late)

    Nyaya iyoyi yemutengo weCHINGWA ndakamboitaura ndichiri mupenyu….saka nanhasi hurumende yeZANU PF ichiri kungoporonga nhai?

  7. Vana vangu wanoda SURVIVAL

    Nyaya iyoyi yemutengo weCHINGWA ndakamboitaura ndichiri mupenyu….saka nanhasi hurumende yeZANU PF ichiri kungoporonga nhai?

  8. Do you buy spare parts everyday?

  9. The beautiful ones are not yet born

    Only an idiot will fail to see that we need to re-dollarise ASAP. 1:1 is the source of all these problems. The RBZ should not be allocating foreign currency. They don’t produce it and they are certainly not wiser than the market.

    Yes production and exports is the ultimate answer, but there is no way we are going to start producing when we are crippled by this nonsensical lie that bond and USD in 1:1.

    1. You nailed it. As long as paine 1:1 whatever we try to do mahumbwe

  10. The sum total of the brilliance of Zanu PF with all its degrees of violence and war credentials and fake degrees of its leaders is zero – exactly where the country is right now. ZERO.
    As soon as even their ardent, unthinking loyalists start feeling the hunger and pain, they will also become angry…it would be interesting to see when that will be and what THEY will do. So far it seems only opposition supporters are hungry and angry and unhappy with the status quo. I think calling for demos etc is a waste of time….let the problems fester on their own so that demos become random, sporadic and endemic.

  11. Chickens coming home to roost.Wheat should easily be coming from our very fertile farms which are lying idle. USD=Bond, those are the results.

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