by Grace Chekai
Government is considering introducing toll milling to replace the current subsidy programme which they say is replete with implementation setbacks, the Harare Post has learnt.
A committee comprising of Permanent Secretaries and Directors from Ministries of Industry and Commerce, Finance and Economic Development, Lands, Agriculture, Water and Rural Resettlement, Public Service Commission, Labour and Social Welfare, Home Affairs as well as Grain Marketing Board (GMB) officials met on 29 April to consider the feasibility of this maize roller meal toll manufacturing program.
The committee is working on instruction from Cabinet resolution of 28 March 2020 which is seeking to re-consider the subsidized roller meal program.
A source told this publication that the subsidized roller meal program had been abused by millers and retailers because of loopholes in the program.
He alleged that millers were diverting some of the maize meant to produce roller meal to produce refined maize meal which they later sell at exorbitant prices beyond the reach of many.
Wholesalers and retailers, the source said, were accused of channelling the roller meal to the black market where they are sold in foreign currency. A 10kg of roller meal at black market costs US$6.
The Source said that cabinet was worried that the Government intervention is failing to produce the desired goal of availing cheap mealie meal to the public.
The proposal is for the Government through GMB working together with Silo Foods, to enter into toll milling arrangements preferably with established millers which have the capacity.
GMB will avail maize to those millers after which the roller meal shall be delivered back to GMB for onward distribution to the targeted vulnerable groups. GMB will distribute through its depots across the country.
Silo Foods is currently paying ZWL $ 1 050 per metric tonne plus 20 percent bran as toll fees.
In that proposed arrangement, Silo will provide maize, packaging and transport costs.
Silo has a milling capacity of about 1 500 metric tonnes per month. It also relies on toll milling from other millers.
One analyst commented that although the proposal was noble,the challenge would be that GMB would still depend on retailers to reach out customers. He said in that case, arbitrage and other rent seeking behaviours would continue..
Another analyst said that this move would elbow out small millers from business.
