By Rudo Saungweme
The National Consumer Rights Association (NACORA) has called upon the Competition and Tariff Commission to thoroughly investigate the unwarranted price hikes of bread.
On its Twitter handle, NACORA called upon the Competition and Tariff Commission to expeditiously and thoroughly investigate how in particular Lobel`s, Bakers Inn and Proton continue to always raise the price of bread at the same amount of money despite differences in quality, weight and other cost-driving variables.
“There is clearly under-the-radar mafia-like cooperation and information sharing that result in coordinated and uniform price increases. A more comprehensive investigation is needed this time around,” reads part of the tweet.
NACORA stated that the prevailing culture of speculative pricing has also resulted in higher prices and very poor products.
“The pricing of bread in Zimbabwe is extremely uncompetitive. Besides the generally very poor and hostile economic environment and the prevailing culture of speculative pricing, this collusive behaviour is resulting in high and higher prices and very poor products that in the process rob consumers of value for money,” it posted.
NACORA highlighted that this bread cartel together with inner circle of big supermarkets are directly and indirectly manipulating prices, thereby hurting consumers.
NACORA posted, “The existence of an illegal bread cartel cannot be ruled out. We believe, upon information and behaviour, that the triumvirate of the big three, namely, Lobel’s Bread, Bakers Inn and Proton, with an inner circle of big supermarket cousins, are directly and indirectly jointly manipulating and colluding to fix the price and supply of bread, thereby hurting consumers.”
Relatedly, Vice President Constantino Chiwenga while addressing captains of industry and commerce at the 13th Zimbabwe International Business Conference in Bulawayo, condemned the continued spate of price increases of basic commodities, saying it was unjustified and was driven by sheer speculation.
