Chronicle Editor
Mashudu Netsianda / Nqobile Tshili, Chronicle Reporters
RETAILERS are mulling engaging manufacturers to stop supplying their counterparts who continue to unreasonably increase prices despite a social contract with Government to reduce prices to March 25 levels.
Government recently announced a moratorium on prices of basic commodities that were increasing without justification.
Three weeks ago, Vice-President Kembo Mohadi announced that the private sector had agreed to slash prices to March 25 levels.
In coming up with the new measures, the Ministry of Industry and Commerce held a multi-sectoral meeting with various key stakeholders which included millers, retailers, National Bakers Association of Zimbabwe, Oil Expressors Association of Zimbabwe, National Foods, Zimbabwe Sugar Sales, the Consumer Council of Zimbabwe, among others and agreed that shops should revert to March 25 prices. A snap survey by The Chronicle yesterday revealed that prices of basic commodities were still high with products such as cooking oil and sugar now in short supply.
The news crew observed that while prices were expected to start dropping as per Government and industry’s agreement, prices of some of the commodities have actually gone up. A 2kg pack of flour which was selling for $80 when Government announced the price moratorium is now selling for between $88 and $98 while a 2-litre bottle of cooking oil is now going for $170. The recommended price is between $137 and $145.
It was observed that in retail outlets where basic commodities are being sold at lower prices, the products quickly vanish from shelves leaving consumers at the mercy of profiteering retail outlets.
Confederation of Zimbabwe Retailers Association (CZRA) president Mr Denford Mutashu said the prevailing environment made it difficult to implement Government measures hence some retailers were taking advantage of the situation to profiteer.
Mr Mutashu said the association was considering engaging manufacturers to cut supplies to ‘greedy’ retailers.
“We are considering engaging manufacturers to cut supplies to those retailers who are refusing to comply.
“We however want to commend those who have remained responsible by maintaining competitive prices even when they are under very difficult situations,” said Mr Mutashu.
He said in some cases, prices of some basic commodities have increased from the manufacturers’ side forcing retailers to pass on the cost to consumers.
Mr Mutashu said prices of maize and wheat have gone up, a development that is likely to see retailers further increasing the prices of commodities.
“It’s not a blame a game and if anyone would want to play a blame game in such an environment, it would be very unfortunate,” he said.
Mr Mutashu said he hoped the Reserve Bank of Zimbabwe (RBZ) would start disbursing funds to manufacturers so that they scale up production.
He said with Covid-19, the country has to produce locally as the global pandemic was affecting even countries that Zimbabwe used to heavily rely on for imports.
“We have to domesticate a lot of raw material supplies of these key essentials because if we continue to depend on other countries, especially under this Covid-19 pandemic, it may continue to create challenges in terms of supply and pricing.
“We remain committed so that there is an uninterrupted supply of goods at affordable prices,” he said.
The Minister of Industry and Commerce Dr Sekai Nzenza has also expressed concern over the continued increases of prices of basic commodities despite an existing Government/private sector social contract on a price moratorium.
Dr Nzenza urged retailers to honour their obligation.
“The increases in the prices of basic commodities is an ongoing challenge. From the Government side, we are seeking the retailers’ support and understanding regarding the moratorium on prices,” she said.
“The increase of prices of basic commodities is very painful to the consumer.”
Minister Nzenza said Government will continue to provide roller meal subsidy to millers for the next three weeks before reviewing the prices.
The price for a 10kg bag of subsidised roller meal is $70.
The Consumer Council of Zimbabwe (CCZ) southern region Mr Comfort Muchekeza said the spiralling prices are leaving consumers desperate.
“Consumers started by cutting on their budgets and many families are therefore compromising on a balanced diet because they cannot afford most basics. Due to the lockdown, consumers have lost buying power because our economy is largely informal,” he said.
He said many families that were surviving on vending no longer have a source of income.
Mr Muchekeza said while negotiations on reducing prices of basic commodities are ongoing, there were a lot of distortions in the market leaving retailers with no option but to increase prices.
Mr Muchekeza said it was worrying that parastatals such as Grain Marketing Board (GMB) increased producer prices for wheat and maize despite the announcement of the price moratorium by Government.
Finance and Economic Development Minister Mthuli Ncube recently said it was important for Government and the private sector to reach a consensus on prices and tame inflation.
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