The Government has issued a cabinet directive instructing GMB to raise the wheat producer price. Wheat was currently at 14 125 ZWL per tonne pegged at 180USD per tonne, the commodity has gone up to 53 000 ZWL per tonne which is pegged at 630USD per tonne.
The average price of wheat is 300 USD per tonne. This will cause a significant increase in the price of bread, flour and other by-products.
A source from the Grain Marketing Board said Millers have been alerted of the new prices. This means that prices are likely to go up immediately. The sources added that the consumer will blame the Miller and bakers for the increase in the price of bread yet the blame should be on government.
The source said government will either subsidise wheat or let the consumer bear the brunt of price hikes.
At the new prices, bread is set to go to 100 ZWL from the current 63 ZWL per loaf.
The new price makes Zimbabwean wheat very expensive. On average wheat costs 370 USD on the international market, while it is in the 170 USD per tonne in Russia.
The Grain Millers Association of Zimbabwe and bakers are expected to release a statement next week.
Source – Byo24