Grain Millers Association of Zimbabwe (GMAZ) Chairman Tafadzwa Musarara yesterday wrote a letter directed to Finance Minister Mthuli Ncube threatening to abandon the government maize meal subsidiaries unless the country’s administration releases subsidiary funds today.
The government had plans to scrap off subsidies, but President Emmerson Mnangagwa reversed the decision.
Removal of subsidies would result in maize meal, which is Zimbabwe’s staple food rising to over $100RTGS which is beyond the reach of poor people in the country.
Millers had already started to reduce prices as a gesture of goodwill according to the GMAZ Chairman.
GMAZ Chairman in the letter says the Ministry of Finance is yet to make good on its upfront payment of the subsidy funds to millers.
“Unfortunately, our members are financially handicapped to continue selling at the subsidised prices in the absence of the subsidies paid upfront as agreed,” Musarara says.
“Accordingly, unless the said funds are provided today, our members will have no choice but to revert back to previous prices on Thursday 12 December, 2019.”
With Zimbabwe witnessing poor harvests this year, the country’s government produced an act that controls the sale of maize, a move to ensure food security in the country.
The country’s administration, in an effort to provide affordable food for citizens, also subsidised roller meal, cooking oil and other basic commodities.