RISING MEALIE MEAL PRICES DUE TO GOVT’S DECISION TO STOP FRA FROM OFFLOADING CHEAP MAIZE TO MILLERS
The Miller’s Association of Zambia MAZ has attributed the soaring mealie meal prices to the government’s decision to prevent the Food Reserve Agency FRA from offloading cheaper maize to millers, leaving prices to market forces.
According to Association President Andrew Chintala, millers used to buy maize at K200 per bag or K4, 000 per metric ton, but now buy the commodity from farmers for between K300 and K330 per bag or around K6, 000 per metric ton.
Mr. Chintala has said that millers previously offloaded mealie meal between K150 to K170 per 25kg bag when they had access to cheaper maize but that farmers are now selling maize to the highest bidder hence influencing the market forces.
He has dismissed the notion that current mealie meal prices are motivated by super profits for producers, but rather a response to the erratic supply of maize on the market, and the high demand for the grain.
A check at some reputable retail outlets in Kitwe, showed that some brands are now fetching as high as K290 per 25kg bag of breakfast meal.
CREDIT: PN