Harare - Stakeholders in the confectionery industry have agreed to increase the price of bread by 10 percent with immediate effect.The decision to increase the price follows a stakeholders meeting between the Bakers Association of Zimbabwe, Grain Millers Association and the National Incomes and Pricing Commission.
The new price of bread will be $1.10 and this is set to present more problems to retailers and consumers in terms of change as smaller denominations are scarce.
Bakers Association of Zimbabwe Chairman, Cydwell Chitehwe said players in the sector have agreed on the price to cushion them against rising wheat costs.
Bakers agreed on 10% increment taking into account rising imports costs of wheat, Chitehwe said.
National Incomes and Pricing Commission Chief Executive Officer, Esau Ndlovu applauded stakeholders for consulting before increasing the price.
Grain Millers Association of Zimbabwe last week warned of the impending increase in the price of wheat and wheat related products in response to the global cereal prices that have short up by 80 percent.
Prices on basic commodities that are wheat related are expected to go in the coming weeks as market players adjust their prices in line with global trends.
GMA chairperson Tafadzwa Musara said the ban of wheat exports by Russia has resulted in the shortage of wheat on the global market and as result pushing prices up.
As a net importer without cautionary strategic reserve, the local milling industry has no option but to increase prices of flour and other related products by 25% of the landed prices, Musara said.
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