malvernmugadzikwa
Emmanuel Kafe
MAIZE-MEAL, flour and salt prices have been reduced after “high-level consultations” between the Grain Millers Association of Zimbabwe (GMAZ) and monetary authorities, as the Zimbabwe dollar continued strengthening on both the official and black markets.
In a circular to members of the Confederation of Zimbabwe Retailers, the Retailers Association of Zimbabwe, wholesalers and other sellers of basic commodities, GMAZ national chairperson Mr Tafadzwa Musarara said the price reductions are aimed at protecting consumers.
A 10kg bag of roller meal now costs $27 593 or US$5.
The price of a 2kg packet of self-raising flour is now pegged at $11 547 or US$2,10, while the price of a 500g packet of fine salt has been slashed to $1 374 or US$0,25.
“The Grain Millers Association of Zimbabwe recently held successful high-level deliberations with the monetary authorities and, inter alia, reviewed the subsisting stabilisation in the economy, precipitated by the firming of the local currency against major currencies,” Mr Musarara said in the circular.
“The current stable environment was, regrettably, preceded by a few weeks of price madness that invariably affected basic commodities, leaving consumer disposable incomes gravely eroded. It is uncontroverted, therefore, that the current stabilisation must show a corresponding decrease in prices of basic commodities.”
This comes as prices of basic commodities in most retail shops continued declining last week, according the Consumer Protection Commission (CPC).
The CPC has now begun conducting weekly price surveys to gauge the market’s response to the firming local currency.
Prices of basic goods rose sharply last month after the Zimbabwe dollar suffered heavy losses.
But despite the local unit making substantial gains on both the official and black markets over the last month, most retailers had maintained the same prices, a practice officials believe is a form of price manipulation.
The Zimdollar has strengthened considerably over the last month to trade at US$1:$4 537 last week, from US$1:$6 713 on June 16.
In an interview with The Sunday Mail, CPC chairperson Dr Mthokozisi Nkosi said: “Each week, we expect to carry out a survey as a way of monitoring the movement of prices of goods, mainly basic commodities, against the official exchange rate.
“It is now going to be a continuous process and not a one-day event; the results will help us to discuss the way forward with business organisations.”
While no businesses have been fined yet, he said, the CPC continues to urge retailers to abide by the law.
“There haven’t been any arrests, but we continue to dialogue with retailers so that they respect consumers and be ethical and also do business legally to avoid being fined.
“What we have seen is that most retailers are complying with the law, although most are being cautious not to review prices downwards by big margins.”
A survey by The Sunday Mail last week showed that a 1kg packet of sugar, which was retailing for around $15 000 in June, is now selling for between $9 000 and $10 500.
Similarly, the price of a 2-litre bottle of cooking oil now costs between $17 000 and $22 000 depending on the brand, down from $28 600 last month.
A 10kg bag of roller meal, which was selling for around $56 772 last month, is now retailing at $39 239.
The price of a 1kg packet of rice has dropped from $19 200 to $12 680.
“We expect more price reductions since the local currency has been gaining on the official exchange market,” Dr Nkosi said.
Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said: “The stability brought about by Government measures points to a positive outlook for consumers.
“There is need to continue improving the doing business environment to place the economy on a firm footing.”
Bongani Ndlovu
Online Reporter