- Government say unscrupulous dealers have forced them to increase prices
FINANCE ministry say they have been forced to increase the subsidy price for roller meal to ZWL70, up from ZWL50 due to irresponsible business tendencies by some unscrupulous roller meal dealers, Zim Morning Post can report.
In a press statement published Tuesday, the Finance ministry said the decision was made in order to reduce the gap between the market and the subsidized prices.
The gap is believed to have created undesirable arbitrage opportunities for unscrupulous players, resulting in pricing distortions.
The roller meal subsidy was introduced in 2019 after prices for basic commodities skyrocketed, threatening the survival of vulnerable groups.
According to reports, the subsidy is currently being subjected to abuse by traders who buy the product in bulk from authorised dealers, only to sell it later at exorbitant prices to informal markets.
Some of the subsidised roller meal dealers have allegedly been corruptly diverting the maize meal to informal markets where they are selling the commodity at US$5-00 or ZWL120-00.
This behaviour has by left a lot of Zimbabweans in a predicament.
According to a Press statement, government is in the process of curbing abuse of the subsidy.
“Government will announce a strengthened targeting system in due course, such that deserving vulnerable citizens as intended by the subsidy policy benefit,” read the statement.