Bread price set to go up

THE price of bread may go up anytime soon, weeks after it was reduced, following an introduction of a 20% import duty on wheat.

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BY MTHANDAZO NYONI

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bread

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A report released by the Livestock and Meat Advisory Council said the issue of tax on imported wheat was discussed during a recent Confederation of Zimbabwe Industries (CZI) and Zimbabwe Revenue Authority (Zimra) meeting. The meeting noted that the tax was a stumbling block towards the bread industry’s revival.

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National Bakers’ Association of Zimbabwe president Givemore Mesoemvura indicated that the 20% levy on wheat imports would have a negative impact on the baking industry.

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“If the price of wheat goes up, it has an impact on the price of flour which in turn has an impact on the price of bread,” Mesoemvura said.

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“Our effort at the moment is to lower the price of bread, bring it to levels where retailers can just mark it up 10% and charge below a dollar, within 80c and 95 cents.

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“This is what we are trying to drive at, but as long as there is a levy imposed on wheat, then obviously those efforts will come to none.”

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Since the adoption of the multi-currency regime in 2009, a standard loaf of bread has been selling at $1 owing to the unavailability of smaller denominations for change.

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It was reduced by 10% recently, following the introduction of bond coins in denominations of one, five, 10 and 25 cents valued at par with US cents.

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The coins were meant to address the price distortions.