19 November 2008
THE Millers Association of Zambia (MAZ) has joined calls for the Food Reserve Agency (FRA) to offload maize onto the market in order to bring down the prices of mealie meal.
Agriculture and Cooperatives Minister, Brian Chituwo, who was yesterday scheduled to hold a meeting with the FRA, said he would issue a comprehensive statement in Parliament today.
MAZ president, Caleb Mulenga said in an interview in Lusaka yesterday that although the Government had finally allowed maize imports, the cost of mealie meal would rise even higher because of the depreciation of the Kwacha.
Mr Mulenga said the Government should alternatively introduce subsidies on mealie meal produced from the imported maize so that consumers could get reasonable prices.
He said the Government had started issuing maize import permits and by the last meeting MAZ members held a few days ago, it was established that the importation of at least 50,000 tonnes of maize had been allowed.
"We have started receiving import permits and some millers have already ordered the maize, mainly from South Africa but consumers should brace themselves for increased mealie meal prices," he said.
Mr Mulenga, who is Superior Milling chief executive officer, said his company had been allowed to bring into the country 5,000 tonnes of maize and it had already ordered the maize from South Africa and a down payment had already been made.
"Superior Milling is importing the commodity at US$420 per tonne which at the current foreign exchange rate is K1,911,000 per tonne or K95,550 per 50 kg bag of maize and we can only make profit if we sell a 25kg bag of breakfast at K70, 000," he said.
He said the depreciation of the Kwacha had a huge negative impact on the price of the mealie meal from the imported maize warning that the mealie meal would be expensive if Government did not introduce other measures.
Mr Mulenga said the Government, through the Ministry of Agriculture started issuing permits to millers for the importation of white maize to offset the current shortfall a few day ago.
He said the Government had allowed a total of about 50,000 tonnes of non-genetically modified maize to be imported into the country by various millers including some MAZ affiliates.
He said Superior Milling expected the imported maize to arrive in the country by the first week of next month.
Forum for Democracy and Development (FDD) president, Edith Nawakwi on Monday advised the Government to direct the FRA to release the maize held in strategic reserve to check the rising prices of mealie meal.
Ms Nawakwi said in critical moments like this, the Government should not rely on the private sector for solutions to the problem.
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