Business reporter

The price of bread is likely to increase if Statutory Instrument 119 of 2020 (SI119 of 2020) is not renewed, The Harare Post has learnt.

SI 119 of 2020, which suspended duty on wheat flour and maize meal, expired on 14 May this year.

“Importers are now paying 5% duty on imported flour. This will soon trigger a further increase in the retail price of bread to ZWL105,” said a contact within the Bakers Association of Zimbabwe (BAZ).

Bread price increased by 5% from ZWL94 to ZWL100 effective 31 May 2021 citing a corresponding increase in cost of production especially flour. The contact said National Foods increased the price of flour from an average of ZWL3 212 to ZWL3 425 per 50kg bag of flour on 27 May 2021.

ZESA, the source said, also increased electricity tariffs for all electricity consuming categories by 30% on 26 June 2021.

“The challenge is that we cannot do away with imported flour as we blend it with the local flour to boost the quality of bread. The majority of the wheat is imported from South Africa on an average price of 475 Rands per 50kg bag.

“The Ministry of Industry and Commerce in consultation with the Ministry of Finance and Economic Development should act on the matter before bakers increase the price of bread,” said the contact.