What has compounded the outlook is that this year’s crop in regional powerhouse South Africa looks set to fall well short of last year’s bumper levels, pushing up prices. Agriculture minister Rugare Gumbo announced recently that the country had been forced to import up to 400,000 tonnes of maize from as far afield as Tanzania.
To head off civil and political unrest – triggered in the past by prices hikes – Zimbabwe’s government has been pushed into re-establishing price controls. But this has been futile because the maize is simply unavailable.
Government recently announced price controls on maize through the state-run Grain Marketing Board, which economists say are likely to discourage farmers from growing maize next year.
In turn, that would exacerbate the food shortages as the country heads into a presidential and general election in which Mugabe and his Zanu (PF) party will try to extend their term into a third decade.
Falling gold and tobacco production and a rapidly sliding exchange rate mean Zimbabwe is extremely short on foreign currency for agricultural imports. – Chief reporter
9.8.2007
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Scarce mealie meal sells for 10 x the price
HARARE
Zimbabwe has virtually run out of its staple foodstuff mealie meal, with the scant supplies selling for almost 10 times the regulated price.
A 10 kg bag of mealie meal is supposed to retail for $55,000; but the very little supplies available are selling for anything up to $300,000.