Street market in Maputo, Mozambique (Photo Courtesy Lilian Liang/PlusNews)

Maputo — The Mozambican government has promised close inspection of bakeries and milling companies to ensure that the price of wheat flour and bread revert to their previous levels.

Increases in the price of bread (by between 18 and 33 per cent, depending on the size of the loaf or roll) were one of the grievances that sparked off last week's violent riots in Maputo and the neighbouring city of Matola. On Tuesday the government promised to introduce a subsidy that will bring bread prices back to the old levels.

Speaking to reporters on Wednesday, after he met with representatives of the milling companies and the bakers, the Minister of Industry and Trade, Antonio Fernando, said that the subsidy will go to the milling companies, enabling them to reduce the price of a 50 kilo sack of flour from the current 1,050 meticais (about 29 US dollars) to the old price of 850 meticais. This should allow bakeries to revert to the old price of bread without loss.

Antonio warned that any milling company or bakery that does not obey the new price will be struck from the list of those benefiting from the subsidy or from cheap flour. He said there would be "intensive inspection" to ensure that bread is sold at the correct price and the correct weight.

Government inspection will also cover rice. The government has ordered a 7.5 per cent cut in the price of third grade rice, resulting from the suspension of import duties on this grade of imported rice.

There will also be inspection of the prices charged for imported potatoes, tomatoes and onions. The government is not directly subsidizing these vegetables but has told customs to charge import duties based on a "reference price", which is lower than the real price of these goods in South Africa and Swaziland.

Victor Miguel, the chairperson of the Baker's Association, claimed that most of the bakeries have already reverted to the old price of bread.

Speaking for the milling companies, Mahamud Sharania said that the rise in the price of flour was caused, not only by rising wheat prices on the world market, but also by the depreciation of the metical and by high operational costs.