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AFTER some retailers wantonly hiked prices of basic commodities, manufacturers stood by their word that they had not increased prices, which indicated that the behaviour by retailers was purely meant to maximise on profits and fleece the public.The situation led to panic buying and a creation of artificial shortages of basic commodities, an environment that could not be let to continue unabated.
While the Government has been clear on that it will not introduce price controls, it has however, put in motion mechanisms to make sure that normalcy returns to the retail sector.
The Government announced last week that it has embarked on a price monitoring system along the production chain from manufacturer to the retailer in a move meant to flush out economic saboteurs unjustifiably profiteering from basic commodities.
The move must be applauded as it will protect consumers, who are the victims in all this.
Above all, the arbitrary increase of prices is also a recipe for social unrest, thus those who are questioning the sincerity of retailers and their pledge to the good of the nation have a good reason to do so.
Briefing journalists during a joint Press conference after Cabinet meeting last week, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said action will be taken against the saboteurs.
“Cabinet resolved that action be taken against those value chain players found to be fuelling unjustified price increases, thereby imposing hardship on the citizens for wanton profiteering,” she said.
Clarifying the same issue, Industry and Commerce Minister Mangaliso Ndlovu said the culprits risk withdrawal of the central bank’s foreign currency support, among other penalties.
Minister Ndlovu said Government was concerned with the sad developments that have seen consumers being charged exorbitant prices for medication and other basic commodities in the past two weeks.
“We have received support from the Reserve Bank of Zimbabwe (RBZ) and the support is mainly going to manufacturers. We met the stakeholders and they have given us assurances that starting from today, there will be adequate stocks. We are monitoring that. We are also monitoring prices, especially those entities that have received foreign currency support.
“There is a peer monitoring system among suppliers and retailers. We will be able to track where the sources of price increases are. We want to urge those who are profiteering that we will take measures against them. In terms of the peer review system, we will start by cautioning the deviants and it might end in the withdrawal of the support that the RBZ is giving to most of the entities. We want to track the source of the increases and establish the stage at which the prices are being hiked and the culprits thereof,” he said.
Government met manufacturers and other stakeholders, who benefit from the Reserve Bank of Zimbabwe’s foreign currency facility and agreed that they should charge reasonable prices in bond notes and bank transfer modes. This followed the release of substantial amounts of foreign currency to the industry for imports to ensure normal supplies.
Online Reporter