• Three cheers for Thuli

    Where are South Africa’s men and women of honour, asks Mandi Smallhorne.

  • Structure your pension

    An expert explains the ins and outs of different types of retirement annuities.

  • Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

Data provided by iNet BFA
Loading...
See More

Zambia mulls maize price controls

Dec 28 2012 14:52 Reuters
Wheat farm

(File, Orlin Wagner, AP)

Related Articles

Zambia inflation quickens to 7.3% y/y

Zambia inflation rises to 6.9%

Zambia's central bank lifts policy rate

Zambia aims to up mining contribution to GDP

Zambia mediates in First Quantum strike

Zambia loses near $9bn to capital flight

 
Lusaka - Zambia is considering re-introducing price controls on its staple maize meal to protect consumers from food inflation, state radio quoted President Michael Sata as saying on Friday.

The price of maize meal has almost doubled to 80 000 kwacha ($15.41) per 25 kg bag from 45 000 kwacha ($8.67) two months ago and the government says the sharp increase is unjustifiable.

Sata said the government would bring back price controls it abolished in 1991 if millers maintained high prices, the state-owned Zambia National Broadcasting Corporation reported.

"As government we can re-introduce price controls if they (millers) don't stop exploiting people," Sata said, according to the station.

The southern African country subsidises maize production and buys the produce, which it then cheaply supplies to millers in times of shortage to keep maize meal prices affordable.

Agriculture minister Emmanuel Chenda this week said the high maize meal price was unjustified after the government offloaded 112 000 tonnes of maize on the local market.

Chenda said some millers who received subsidised maize from the government were selling maize meal to neighbouring Democratic Republic of Congo (DRC) instead of supplying the local market.

Maize meal is the staple of the Zambian diet that sustains poor households, so curbs on its price could be have wide political support.

Zambia's inflation rate accelerated to 7.3% year-on-year in December from 6.9% in November, partly because of rising food prices.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

maize
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...