New grain prices set to trigger rise in basic commodities: GMAZ

THE COST of bread is forecast to increase after government increased maize and wheat prices by 86% and 38% respectively.

Prices in retail shops have risen in recent months and are likely to continue going up.

This comes as prices of basic commodities have maintained their upward trajectory each time the local currency nosedives.

The Grain Millers’ Association of Zimbabwe (GMAZ) said maize was now pegged at ZW$1 300 per tonne, up from ZW$700 while wheat now retails at ZW$2 200, up from ZW$1 600 per tonne.

“In as much as we (millers) have no problem with these price increases we, however, foresee maize-meal and flour-related products going up in the near future as a result of these margins,” GMAZ spokesperson Garikai Chaunza said.

Government approved the increase of producer prices for most grains in April, including wheat and maize.

However, to cushion citizens struggling to make ends meet, authorities also approved a 38.5% subsidy on the selling price to millers in order to prevent increases at retail level.

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