Cooking oil producers increase supply

Busisa Moyo

Busisa Moyo

Livingstone Marufu Business Reporter
COOKING OIL manufacturers have supplied 4, 4 million litres of the commodity to the market since brief shortages a fortnight ago, which has restored availability of the product to near normal levels. Producers increased supply following acute shortages experienced due to panic buying that occurred about two weeks back. Oil Expressors Association of Zimbabwe president Busisa Moyo said the oil producers will continue to increase supplies to the market despite shortages of foreign currency.

“We have managed to put around 2,2 million litres of oil into the market in the aftermath of panic buying of major basic commodities especially cooking oil,” Mr Moyo said last week.

He said foreign currency was still a major challenge, but indicated the Reserve Bank had promised to address the issue. The oil producers are lobbying for permission to sell some of the product for cash in foreign currency to be able to import raw materials. The assertion is that cash sales in foreign currency will supplement the $30 million weekly allocation from RBZ.

“We all know what is happening in the economy, informal dealers are buying through electronic payment systems from shops at around $4 or $5 per 2litre bottle and sell for $3 to get cash especially US dollars and it’s creating serious problems for us. We are in discussion with the Reserve Bank of Zimbabwe to allow people to buy basic commodities with cash at an incentive so that the retailers can have the physical US dollar notes so that they can be able to import critical goods. This will certainly fizzle out the informal market and will allow the retailers to bank the money,” said Mr Moyo.

Government is monitoring retail shops and wholesalers in major cities and towns to assess availability of basic commodities and their prices. Confederation of Zimbabwe Retailers are also carrying out their own survey to be used to compare notes with Government. Government intends to incentivise players in the cooking oil value chain starting next year to ensure the adequate supply of raw materials and crude cooking oil reserves. It will also extend incentives to all small scale farmers of soya beans and sunflower to boost production of crude oil. Apart from ensuring enough supply of crude oil, the initiative will also help cut the annual import bill of $120 million spent on crude oil imports.

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  • eliah

    On sunday there was no cocking oil at Pick & Pay Bdale and there were marketing their oil for $4.99 ,so were is the increased oil going to ,and we need investigation of were these retail giants are sourcing some of this highly priced cocking oil from.

  • Wellington

    But Mr Busisa your own ROIL from UR is not even in the shelves even before the shortages started it was never in stock, so where is this increase coming from? Or its just another political statement

  • Jack Hutano

    You are right, Mbangi.There’s excessive consumption of cooking oil in Zimabwe. 2 litres should easily last 6 months for family of six or eight people. Healthier substitutes are water and dovi.

  • Godfrey Mlilo

    You are talking absolute nonsense Busisa. Critical product? What or which critical product ? You are getting some forex allocation from RBZ for crude oil and now you expect us to use virtually non-existent physical cash for your product so that retailers can have some cash? Once this has been approved by Panonetsa Mangudya, you will then ask retailers and wholesalers to pay cash for your products. Manje wanyangira yaona!!