Bread, however is being sold at between $450 000 and $700 000 on the
parallel market.
The new prices were announced in a Statutory Instrument that was
published on Tuesday, although bakers are saying the new price was
significantly below the cost build-up which is between $350 000 and
$500 000.
The Minister of Industry and International Trade, Obert Mpofu, said
the prices were with immediate effect.
In an interview with CAJ News on Wednesday, The Bakers Association
Chairman Vincent Mangoma, said the new prices were not viable
considering that they cost of making one loaf was almost $400 000.
“We have made submission to the ministry (Industry and International
Trade) but the response has not been favourable,” Mangoma.
Major bakeries have scaled down operations drastically citing
viability problems, and calling for an expeditious determination of
the price review application.
“Such prices would depress result in bread continuously disappearing
in the market but readily available on the parallel market,” he said.
Mangoma said they submitted that the general price of bread be US$1
per loaf and urged government to take a leaf from the regional pricing
model for the commodity.
They have also cited the escalating cost of fuel, claiming that they
were obtaining the commodity from the parallel market-CAJ News.
Post published in: News