adminlocal products more market space and room to revive operations.
The Grain Millers’ Association of Zimbabwe is one of the groups that lobbied for the re-introduction of duty on imports.
Grain Millers’ Association of Zimbabwe chairman Mr Tafadzwa Musarara said the move to reinstate the duty on imports especially maize meal has a positive impact on the local farmers since they can now sell their produce with less competition.
“The move by the Government to reinstate duty on imports will go a long way in helping our local farmers to sell their produce to the millers with less competition from imported maize.
“We feel that this duty is going to decrease the amount of imports coming in so that we’ll be able to go and mop up the grain that’s available at a viable price and then mill it.
“We also want to state that there will be no price increases from the milling industry unless the actual price of maize itself increases,” said Mr Musarara.
He also said criticism of the re-introduction of duty is misplaced as imports forced many grain millers to shut down due to unfair competition.
However, Mr Musarara emphasised that there would be no looming hikes for maize meal following stakeholder concerns that some local business people will affect price increases after reinstatement of duty on imports.
“We want to assure everyone that there will be no imminent price increase in the wake of the re-introduction of the 10 percent import duty on the product,” he said. Calls to protect local industry have increased as capacity utilisation has improved from below 20 percent in 2008 to between 40 and 50 percent at present.
However, consumers have lost trust in local business people who are yet to wean themselves from the culture of hiking prices whenever there is less competition.
Online Reporter