Bread price in Zimbabwe is set to decrease starting tomorrow.
This was said by Grain Millers Association of Zimbabwe (GMAZ) chairman Tafadzwa Musarara during a media briefing in the capital, Harare on Thursday.
Musarara said the decrease in bread price has been necessitated by the foreign currency auction system established by the Reserve Bank of Zimbabwe (RBZ). He said the auction system had seen a reduction in the price of bread flour.
He said GMAZ has had discussions with central bank governor John Mangudya. He said bakers had also committed to reducing the price of the standard loaf.
Musarara said:
The price of bread, a necessity in all households, had become expensive and indeed worsened the cost of living. Following he re-established of the Foreign Currency Auction System by Reserve Bank, GMAZ has had fruitful discussions with RBZ 5overnor, Dr. Mangudya, whereupon foreign currency allocations to millers are being made.
He said bread prices in Zimbabwe will now be guided by the outcome of the foreign currency auction system which is done every Tuesday. Musarara said, “As a result, on behalf of wheat millers, I am pleased to advise that the cost of bread flour, with effect from 3 July 2020, has been reduced from ZWDS3 150 to ZWD2 136.89 per 50kg.
Consequently, the bakers have committed to reduce the price of a standard loaf of bread from wholesale price of ZWD70 and retail price of ZWD79 to wholesale price of ZWD 59 and retail price of ZWD 66. From now on, our prices will be guided by the Foreign Currency Auction outcomes”.
In May GMAZ advised millers that they had run out of wheat and millers had to import on their own to meet market requirements resulting in millers resuming imports using free funds.
Bread price in Zimbabwe had over the past two months increased from ZWD18 to ZWD79 per standard loaf and had also affected the rest of the confectionery products.