Grain Millers Association of Zimbabwe (GMAZ) has appealed to Government to review the prices of the subsidy mealie meal upwards citing viability challenges.
Currently, GMAZ is receiving 20 000 tonnes of maize a month from Grain Marketing Board and it is not enough given the increase in demand. Currently, a subsidised 10kg of roller meal is selling at $50. GMAZ chairman Tafadzwa Musarara said millers are receiving a limited maize stock supply from GMB against the previous supply of 40 000 tonnes per month due to drought facing the country.
"We are getting limited stocks from GMB and we also have our imports from neighbouring countries but we are unable to sell them because the subsidy price was computed using maize from GMB. Now we have imported maize which is more expensive than the price of $4 000 per tonne we are getting from GMB," he said.
Mr Musarara said so far GMAZ have imported 50 000 tonnes which are in transit from South Africa using free funds, while some are stocked in Bulawayo and Aspindale in Harare. National Business Council of Zimbabwe president Dr Keith Guzah said they had formed a taskforce that will interrogate the supply chain to curb mealie meal leakages to the parallel market.
Subsidies on maize-meal and rice are in place to ensure citizens have access to cheaper basic foodstuffs and cushion them against the obtaining economic challenges.
More to follow