The Zambia National Farmers’ Union (ZNFU) says it is saddened by the reintroduction of price controls of maize by Minister of Agriculture Michael Katambo.
And the Farmers body has described Mr Katambo as the Minster of Millers.
The Union says it would like to disassociate itself from such acts as it has always believed in a free market environment.
“As such, the ZNFU would like to disassociate itself too from being party to the consultation process of the reintroduction of price controls of maize,” ZNFU President Jervis Zimba said.
“We are aware that the Minister met with Stockfeed Producers, Millers and Traders who were threatened or coerced to impose the price of K130 per 50kg bag of maize with the full support of the Food Reserve Agency (FRA), which was the basis of price controls.”
“In this vain, the Union has called for an urgent meeting of farmers this week to chart the way forward on the reintroduction of maize price controls by Government, and the nation shall be informed of the outcome of the meeting.”
No cheating or politicking with the food people need to eat.
Farmers can’t be toiling for nothing. Let the farmers hold on to their maize and we shall see who will cry the most
These quacks had assured the nation that they had enough maize in stock. Why are they crying for maize from farmers now? Cretins
This is what happens when:
1) people lack patriotism
2) people love money before anything
Shame on all the people behind this scheme. Even government can do better.
Price is a function of production cost, supply and demand ‘but’ not always and the minister needs to understand the concept of free market economy.
Minister of agriculture will argue that every household needs to be able to manage to buy a 25Kg bag of mealie meal since it is an essential commodity. While his argument may be is valid, the long term effects of price controls is the negatively affect the growth of the economy.
I argue, instead of reintroducing price controls why not and just why not fix the economy by 1. keeping up with the demand (release more maize to millers), 2. Fire up those solar hammer mills. How will price controls make mealie meal affordable if there is the so called ‘smuggling’?
The only sectors with price controls that have benefited the people of Zambia…
cont’d
The only sectors with price controls that have benefited the people of Zambia are transport, airtime and fuel pump prices.
Remember: it is the state of the economy that determines the state of prices of goods and services.
Of course government wants to buffer effects of shocks. At the moment dont call it Price control, but rather a step to halt “unreasonable” price hikes by millers and reduce “inflation expectations of the public.
Though price controls may be seen as a tempting quick fix, there is little proof that they have worked to dampen inflation and usually price controls are only likely to work if the controls are implemented for a very short time
If price controls are kept too long, they cause a sharp jump in prices. Price controls if kept long lead to market distortions like reduced supplies because they discourage domestic production, processing and trade. By dampening the underlying causes of inflation, price controls prevent market solutions.Insead the Government need to take focused…
cont’d
action, with direct subsidies for the poor rather than the whole country. Income transfers or food assistance for poor people will work more efficiently and sustainably than more general steps at the national level.
Poorly written article. ZNFU is an organization and not the name of an individual. Who was speaking for ZNFU or if this was from a letter, who signed the letter? So far this is just a rumour
Pios?The writing on the wall..
@Dennis Mawelera. Targeted subsidies will look like PF is campaigning? Electorate don’t know what is what. So cadres will say “ECL has reduced the price of mealie meal that was caused by HH and the opposition.” PF will find a way to make the mealie issue a political one to the electorate.
BTW, who exactly is a poor person by definition in Zambia?
But even if its perceived as PF is campaigning,as long as the most vulnerable are helped.Genuinely there is a price crisis .The only problem is targeted subsidies are difficult to target.In Zambia Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclear water.
@Dennis Mawelera. I like you already.
Ours is man-made/politically-made poverty.
@ Dokowe .But even if its perceived as PF is campaigning,as long as the most vulnerable are helped.Genuinely there is a price crisis .The only problem is targeted subsidies are difficult to target.In Zambia Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclear water that you drink every day.
Socialism dictatorship. They will even tell you who to sleep with. This is why my boyfriend callum will never visit Zambia.
Unfortunately this move has failed before,many supporting this are too young to remember the shortages and queuing for meal meal for hours.Kaunda’s minister’s had no government contracts, with PF corruption the failure will be specular and likely to bring the government down.It was mealie-meal which nailed Kaundas final nail in his rule..
Ilyashi Kya katana when others are thinking about bigger things.Vote for adedos free fertilizer and K23 ubunga.Free education,free hospitals,free education from 1 to 12.University K5000 fixed per year
Meant ilyashi lya mataba
Chiwamila Mbuzi Kuluma Galu. The reason why the farmers Union is there is to look after the farmer”s produce pricing included and if this is not control then they know better what it is. When the Millers appoint a spokes person means they speak one voice and if that also is not control , then what is it? Others have never gone above K115 for a 25kg bag of breakfast and others are at 150 Kwacha. If the formula is the same then the input is different or the answer is wrong. Control has to be there somehow.