production.
The Government in July re-introduced import duty on most basic commodities bowing down to pressure from local industry which said it was being stifled by competition from cheap imports.
In a statement, National Foods chairman Mr Todd Moyo said the re-introduction of duty would also have positive effects on downstream industries.
“The decision by Government to introduce a nominal duty on imported maize meal in June has enabled us to increase milling volumes without increasing the retail price,” he said.
“Should a similar duty on flour be introduced it will likewise have a positive impact,” he said. Mr Moyo said the move would also encourage local crop production and boost food security in the country.
He said locally produced flour was facing stiff competition from cheap imports. The company had sufficient stocks of wheat to meet demand on the market, he said. “We remain well positioned to process the anticipated increased volumes of locally grown wheat.
“But we remain under pressure to
compete against cheap Mozambican duty free imports,” he said. – New Ziana.
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