by Innocent Mujeri
Chairman of the Grain Millers Association of Zimbabwe (GMAZ) Mr Tafadzwa Musarara has announced that the price of a standard loaf of bread will be reduced from ZW$79 to ZW$66 with effect from tomorrow.
Musarara made the announcement at a press brief held today in the capital.
“Consequently, the bakers have committed to reduce the price of a standard loaf of bread from wholesale price of ZW$70.00 and retail price of ZW$79.00 to wholesale price of ZW$59.00 and retail price of ZWD66.00,”said Musarara.
Musarara further said from now onwards, the price of bread will be guided by the Foreign Currency Auction outcomes.
Musarara said this positive development was a product of discussions between GMAZ and Reserve bank of Zimbabwe (RBZ) Governor, Dr John Panonetsa Mangudya who assured them that foreign currency allocations will be made to millers.
“Admittedly price of bread, a necessity in all households, had become expensive and indeed worsened the cost of living. Following the re-establishment of the Foreign Currency Auction System by the Reserve Bank of Zimbabwe, GMAZ had a fruitful discussion with the RBZ Governor Mangudya, whereupon foreign currency allocation to millers is now being made,” said Musarara.
The GMAZ Chairperson also said that previously the price of bread could not remain stable as it was being influenced by fluctuations of the US dollar rate against the Zimbabwean dollar.
“In May 20202,Grain Marketing Board (GMB) advised millers that they had run out of wheat and millers had to import on their own to meet market requirements. This led millers to resume imports using free funds. Regrettably price of bread flour could not be stabilized as before as it was now susceptible to vagaries of moving rate,” said Musarara.
One Mt Pleasant resident, Mrs Gertrude Nyamowa who spoke to this publication applauded the reduction of bread price as most families were now failing to buy it due to the exorbitant price.
“This is a welcome development as most families could no longer afford to buy bread due to the high price. The price reduction will bring it within reach for the consumer. We hope the same gesture will be spread to other products within the milling industry,” said Mrs Nyamowa.
The reduction of bread price is likely to be welcomed by many families as bread had become unaffordable to most people.
