3 January 2013

Mozambique: Nation Hopes to Buy Wheat From Argentina

Maputo — The Mozambican government is negotiating with Argentina for supplies of wheat at fixed prices.

According to the Minister of Industry and Trade, Armando Inroga, speaking at a Maputo press conference on Thursday, the purpose is to guarantee the stability of wheat prices, and reduce the burden of the current subsidy that the government pays to bakers in order to keep bread prices low.

Attempts to increase domestic wheat production have so far not been very successful, and so the bulk of the wheat consumed in Mozambique is still imported, and the price fluctuates.

The government believes that a deal with Argentina could keep prices low.

Inroga said he expected negotiations to be concluded by June. In that month a delegation from Argentina could visit Maputo, or a Mozambican delegation could visit Buenos Aires to seal the agreement.

“This will be advantageous to Mozambique since we will have wheat at accessible prices, and it will give Argentina a guaranteed market”, said the Minister.

After riots in Maputo on 1-2 September 2010 against rises in the price of bread, the government brought the price down again by subsidising the bakers. This has kept the price of a standard 250 gram loaf of bread at five meticais (17 US cents).

The 2012 state budget included a sum of 615.3 million meticais for the wheat subsidy. However, by 30 June, only 39.8 million meticais of this subsidy had been spent, thanks largely to the fall in international wheat prices.

Inroga guaranteed that the price of bread will remain stable throughout 2013.

Ads by Google

Copyright © 2013 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.