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Elita Chikwati and Enacy Mapakame, Harare Bureau
THE Grain Millers’ Association of Zimbabwe has urged packaging companies to use the money allocated to them by the Reserve Bank of Zimbabwe to prioritise production of packaging material for basic commodities to ensure the end product is affordable to consumers.
This was said by GMAZ chairman, Mr Tafadzwa Musarara, after a meeting with packaging companies last week.
The meeting came after packaging manufacturers increased the cost of packaging by over 500 percent and this affected the price basic commodities.
Manufacturers of packaging for mealie meal and bread more than doubled their prices, a situation that is likely to see a further increase in the prices of food.
Mr Musarara said companies that produced packaging materials should prioritise basic commodities as food was a right to the people and therefore should be affordable. “We had a frank meeting with the packaging companies and we were telling them to use the foreign currency they get from the RBZ to go towards packaging of basic commodities; maize meal, salt, rice and bread, he said. We discussed these matters and we have to be prioritised on 1:1. If we are not prioritised on that foreign currency from the RBZ, then we have serious price crisis.”
Mr Musarara said it was impossible for manufacturers to produce packaging material at a black market rate as this would increase production costs and affect the consumers. “We have had instances where a bag of 10kg roller meal which was costing about 40 cents is now at a dollar,” he said. “Not only is it affecting millers, but across value chain, so you realise the price of bread increased by 30 percent.
“We sell a commodity which is deemed a human right and if our costs start to be foreign currency denominated, then it becomes difficult to sell the product. You cannot sell mealie meal in foreign currency.”
Mr Musarara said there was no justification for millers to sell maize meal in foreign currency when Government was investing around $200 million for maize meal every year.
“As business, it is important that prices are sustainable for everyone, that Government realises returns from their investment and secondly consumers should eat as much as they want,” he said.
“We are approaching the RBZ now on the allocations they make, for packaging manufacturers to be ring-fenced for production of packaging for basics; the staples such as mealie meal, flour, rice, bread and salt, and not on sweets. The foreign currency issue is a challenge. It is limited, so what we are asking is that the little that is availed go towards packaging for basics.”
Mr Musarara said millers wanted to produce 45 000 tonnes of bread flour, 10 000 tonnes of salt and 25 000 tonnes of rice for the festive season.
Lands, Agriculture, Water, Climate and Rural Resettlement deputy Minister Vangelis Haritatos said Government was not going to introduce price controls, but was encouraging engagement among stakeholders.
“Millers and packaging companies should engage,” he said. “They should not make decisions without consulting other stakeholders. As Government we have no intention of setting any price controls whatsoever.
“The best position should be practical and affordable by consumers out there.”
Online Reporter