THE Government has directed the Food Reserve Agency (FRA) to reduce the price of maize to millers from U$200 per tonne to U$160 in order to bring down the prices of mealie meal.
Mealie meal prices currently range between K43, 000 and K55, 000 for 25 kilogramme bag of breakfast and between K28, 000 and K43, 000 for roller meal.
Chief Government spokesperson Ronnie Shikapwasha told journalists at Parliament buildings last evening that the reduction in the price of maize should result in reduced mealie meal prices.
The reduction means that a 50kilogramme bag of maize would now cost K40, 000 from the previous K50, 000.
Lieutenant-General Shikapwasha said the Government expected millers to bring down mealie meal prices to correspond with the reduction of maize prices.
“Government will also expect mealie meal traders to pass on the benefits of reduced prices to consumers.
“In addition, Government expects consumers to be vigilant and purchase mealie meal only from millers and traders who will reduce their mealie meal prices,” he said.
Lt-Gen Shikapwasha said the Government was also targeting the school feeding programme to benefit from the surplus maize stocks.
“Relevant Government wings will be tasked to ensure that millers do not engage in speculative activities including hoarding and reselling of stocks.
“The price of maize for trading and export will remain at $200 per tonne, therefore maize sold to millers at a reduced price should not be exported,” he said.
Lt-Gen Shikapwasha said that Government would continue to encourage the FRA and the private sector to export surplus maize in order to create space for the following harvest.
“So far indications are that the nation may enjoy another good crop this year which will pose a challenge on storage space if the surplus crop is not disposed of,” he said.
To date the FRA has exported about 200,000 tonnes of maize and the agency still has about 800,000 tonnes in storage.
In the last farming season, Zambia recorded a bumper harvest of 2.8 million tonnes while the country’s consumption was estimated at two million tonnes.
When contacted, Millers Association of Zambia chairperson Peter Cottan said he would comment over the matter after analysing Lt Gen Shikapwasha’s statement.
“It will be premature for me to give a comment before I analyse the statement that was issued by the minister,” Mr Cottan said.
[Times of Zambia]