THE increment of mealie meal prices by that level and at this time of the year when the country has just posted an annual bumper harvest of the staple crop, maize, defies any logic.
From basic economics, we are told the higher the supply of a product on the market, the lower the prices, of course all things being equal, that is.
Zambia's yearly maize consumption level is about one million tonnes and in the year when the country has recorded total production of about 2.9 million tonnes, the surplus is so huge that shortage of the commodity is unthinkable.
Why then should the Zambian consumers witness the increase in the prices of the country's staple food by as much as K5,000 per bag, now?
Every year, the dawn of the maize harvest season in this predominantly agro-driven economy marks the beginning of good things, starting with low prices of commodities, availability of goods and generally the value of the Kwacha picks as the result of the low demand for foreign exchange.
There is low demand for foreign exchange in that the importation of food products is reduced as opposed to the time of food shortage when huge imports have to be made to sustain the consumption levels in the country.
In short, the prices of mealie meal have been a driver of almost the entire local economy, more so in that the export of this product is, somewhat, regulated by the Government through the issuance of export permits.
But perhaps this is just too basic to be true.
As a result, we have seen the emergency of economic pundits of all sheds and sizes propounding the issue but the more they do so, the harder it becomes to understand the current price increase.
Some have said the situation has been caused by the effects of the global economic trends adding that Zambia is not an island and, therefore, it is not insulated from the external economic shocks from the international community.
This crop, however, whose sale is controlled and inputs highly subsidised by Government, is not so vulnerable to the effects of the international trends.
But the Civil Society for Poverty Reduction rubbished the assertion, saying it was unfair for Government to continue subsidising maize to millers when the cost of mealie-meal had remained high.
The Zambia Consumer Association (ZACA) has condemned the price hike.
ZACA executive director Muyunda Ililonga says the price hike was not justifiable following a bumper harvest.
This, however, is not a new thing because even about three years ago, despite the availability of the commodity, the prices of mealie meal went skyrocketing, raising frustration on Government which had been subsidising the production of the crop for about a decade now.
In 2008 then Deputy Speaker of the National Assembly Mutale Nalumango had to order Government to explain the escalating prices of the commodity.
"These are matters of national importance and, therefore, the point is relevant," she said.
Interestingly, she was making a ruling on the point of order raised by then Pemba Member of Parliament David Matongo who asked whether it was right for Government to remain mute in the face of the escalating prices of mealie meal.
Government responded to the situation by directing the FRA to offload huge amounts of maize to millers as a way of checking the prices of the country's most popular food item.
This unfortunately did not yield much because in the end, the benefits of the cheaper maize released by the FRA did not reach the consumers and the prices remained high until the next harvest.
It looks like the scenario would repeat itself this time around and it is unfortunate that the millers, manufacturers and other middle people seem to be always cashing in on the consumers.
This is despite Government's effort to maintain prices of the mealie meal by subsidising production through the Farmers Input Support Programme.
THE increment of mealie meal prices by that level and at this time of the year when the country has just posted an annual bumper harvest of the staple crop, maize, defies any logic.
From basic economics, we are told the higher the supply of a product on the market, the lower the prices, of course all things being equal, that is.
Zambia's yearly maize consumption level is about one million tonnes and in the year when the country has recorded total production of about 2.9 million tonnes, the surplus is so huge that shortage of the commodity is unthinkable.
Why then should the Zambian consumers witness the increase in the prices of the country's staple food by as much as K5,000 per bag, now?
Every year, the dawn of the maize harvest season in this predominantly agro-driven economy marks the beginning of good things, starting with low prices of commodities, availability of goods and generally the value of the Kwacha picks as the result of the low demand for foreign exchange.
There is low demand for foreign exchange in that the importation of food products is reduced as opposed to the time of food shortage when huge imports have to be made to sustain the consumption levels in the country.
In short, the prices of mealie meal have been a driver of almost the entire local economy, more so in that the export of this product is, somewhat, regulated by the Government through the issuance of export permits.
But perhaps this is just too basic to be true.
As a result, we have seen the emergency of economic pundits of all sheds and sizes propounding the issue but the more they do so, the harder it becomes to understand the current price increase.
Some have said the situation has been caused by the effects of the global economic trends adding that Zambia is not an island and, therefore, it is not insulated from the external economic shocks from the international community.
This crop, however, whose sale is controlled and inputs highly subsidised by Government, is not so vulnerable to the effects of the international trends.
But the Civil Society for Poverty Reduction rubbished the assertion, saying it was unfair for Government to continue subsidising maize to millers when the cost of mealie-meal had remained high.
The Zambia Consumer Association (ZACA) has condemned the price hike.
ZACA executive director Muyunda Ililonga says the price hike was not justifiable following a bumper harvest.
This, however, is not a new thing because even about three years ago, despite the availability of the commodity, the prices of mealie meal went skyrocketing, raising frustration on Government which had been subsidising the production of the crop for about a decade now.
In 2008 then Deputy Speaker of the National Assembly Mutale Nalumango had to order Government to explain the escalating prices of the commodity.
"These are matters of national importance and, therefore, the point is relevant," she said.
Interestingly, she was making a ruling on the point of order raised by then Pemba Member of Parliament David Matongo who asked whether it was right for Government to remain mute in the face of the escalating prices of mealie meal.
Government responded to the situation by directing the FRA to offload huge amounts of maize to millers as a way of checking the prices of the country's most popular food item.
This unfortunately did not yield much because in the end, the benefits of the cheaper maize released by the FRA did not reach the consumers and the prices remained high until the next harvest.
It looks like the scenario would repeat itself this time around and it is unfortunate that the millers, manufacturers and other middle people seem to be always cashing in on the consumers.
This is despite Government's effort to maintain prices of the mealie meal by subsidising production through the Farmers Input Support Programme.
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