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Herald Reporters
Government should interrogate the structure of the milling industry, including the subsidy model, to prevent the leakage of roller meal that is in short supply.

The subsidy was introduced in December last year to cushion the poor and lower the price from $100 to $50 for a 10kg bag.

Zimbabwe National Chamber of Commerce (ZNCC) chief executive and economist Mr Takunda Mugaga said Government needed to interrogate the operations of the milling industry.

“The structure of the milling industry needs to be interrogated because there are few players, it’s an oligopoly, which means the few players can manipulate the whole industry,” he said.

“If there were many players, there could be competition, but that is not the case at the moment.

“It’s not surprising that there could be some who are diverting the commodity to the black market.”

Mr Mugaga said there was need to relook at the subsidy model to ensure timeous disbursement of money.

“Government and millers should sit down and have an honest discussion on the subsidy model,” he said.

“The question is: At what point does the subsidy come in and when are the payments made? If this is done, some of these distortions we are witnessing can be eradicated.”

Under the model, millers are only paid after producing evidence that the commodity was produced and supplied.

This, Mr Mugaga said, could result in some millers benefiting from the subsidy while diverting the product to the black market to get quick returns.

Another economist, Mr Misheck Ugaro, did not rule out collusion between players in the value chain.

“I haven’t researched on what could be happening, but I wouldn’t rule out that there is some collusion in the whole supply chain,” he said.

“It could be that the commodity is being channelled to the black market from the wholesalers or even the millers.”

Mr Ugaro said the lower profit margins could be driving millers and retailers to divert the maize meal to the black market.

Meanwhile, a survey conducted in supermarkets in the Harare central business district (CBD) yesterday showed that there was no maize-meal on shelves.

Customers complained that some supermarket workers were diverting the commodity to the black market.

Managers at leading supermarkets said supply was being outstripped by demand.

“We are waiting for the supply of mealie meal, as it usually comes at the beginning of the week or mid-week at this supermarket,” said Mrs Yvonne Kamoyo.

“We thank the Government for cushioning ordinary people from profiteering, inflation and drought through this subsidised roller meal.

“Next, we are appealing to the authorities to take action on corruption that is taking place whereby supermarket employees grab large quantities of the mealie meal for themselves at the expense of citizens who spend hours queuing.”

On the black market, roller meal is selling at $110 for a 10kg packet.

Last week, the Government announced a taskforce chaired by Industry and Commerce Deputy Minister Cde Raj Modi to ensure transparent and equitable distribution of the product and to make follow-ups with retailers to curb diversion of the maize-meal to the black market.