Zimbabwe is left with a month's supply of wheat, Grain Millers Association of Zimbabwe (GMAZ) president, Tafadzwa Musarara has revealed.
Musarara told journalists soon after the GMAZ northern region meeting Wednesday, that mealie-meal prices will go up with the next seven days.
"On the wheat side, all milling companies have less than 30 days' supply left. Hence we are calling on the Reserve Bank of Zimbabwe to quickly avail the much needed foreign currency before the situation worsens," Musarara said.
Zimbabwe has been struggling with wheat shortages for years now, blamed on the disruptions in the agricultural sector caused by the land reform programme and intermittent droughts over the past 19 years.
The GMAZ boss added that that mealie-meal prices were set to go up soon, due to effects of the newly gazetted producer prices.
"As you are aware, government recently gazetted new prices that will be paid to farmers. The increase is by about 70 percent and as millers we cannot absorb the costs, so we have consulted our members and agreed on a new price structure.
"However, we will be withholding the announcement on when the new price structure will be effected until we have consulted government but we definitely can't absorb the new producer prices," said Musarara.
Foreign currency shortages have also affected wheat supplies.
In early February, bread price increased by a whopping 66 percent leaving government weighing options on the need to step in and control prices before authorities introduced fuel subsidies in a bid to stabilise the situation.
From December 2018 to date bread prices have increased more than four times.
The grain situation is likely to worsen this year because of the Elnino induced drought, the devastating effects of Cyclone Idai and poor economic performance.
Read the original article on New Zimbabwe.
Massive Retrenchments Loom As Economy Slows Down
Civil Servants Smile All the Way to the Bank
AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 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.
AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 150 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Monrovia, Nairobi and Washington DC.