Wheat milliers have expressed concern over the depreciating Zimbabwe dollar which they say is now making it difficult for them to operate. As a result, they are considering a hike in the price of flour and consequently an increase in the price of bread.
A miller who is a member of the Grain Millers Association of Zimbabwe (GMAZ), told NewZimbabwe.com that the foreign currency auction-rate has coincided with a 20 per cent reduction in the price of flour, a development that has increased production costs. The miller, who requested anonymity, was quoted as having said:
I think you are aware of the fact that since the introduction of the Foreign Exchange Auction Trading system on 17, June 2020, the price of flour related products had been stagnant, and in fact, you saw the reduction in the price of bread which went down by almost 20%.
Now that the official rate (auction forex exchange rate) has been moving upwards and now by 34% to be precise, we are finding it difficult to operate. In fact, we are now subdued and cannot absorb the production costs.
The miller added that prices of flour will likely up by 26% and this could also result in bread price going up by 35%.
He said they spoke spoken to GMAZ chairman Tafadzwa Musarara for price adjustments to be effected before 31st of July.
However, because of the planned 31 July demonstrations, the price adjustments were shelved as there was concern that the government would accuse millers fuelling the demonstrations.