The Grain Millers Association of Zimbabwe (GMAZ) has warned of a further bread price increment if the government does subsidise the price of wheat.
The price of bread went up from $1 to $1.10 this month after international suppliers of the cereal reportedly hiked prices by $35 per metric tonne in response to rising shipment costs.
Addressing journalists at the Bulawayo Media Centre on Thursday, GMAZ chairperson Tafadzwa Musarara said the association has applied for a $50 subsidy for a tonne of wheat to cushion millers from the rising costs of importing wheat.
“We have requested for a subsidy of $50 per tonne from government and for the bakers to get $7 million per month for them to buy other ingredients other than flour so that the bread price comes down to $1.
“We are still waiting for a response. We submitted our request just before the new cabinet was appointed,” said Musarara.
The GMAZ boss said the current $1,10 for a single loaf of bread by retailers is still untenable and will result in the commodity disappearing from the shop shelves unless government intervenes.
“We are now facing two tough choices. If we maintain the current bread prices, the product will not be available.
“Two, if we increase the prices, the product will be available and we felt that increasing prices is a better devil at least the product is available while other interventions happen,” he said.
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