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Victor Maphosa Herald Correspondent
THE grain milling industry has commended the Government’s recent decision to review maize producer price upwards.
In a statement, Grain Millers’ Association of Zimbabwe national chairman Mr Tafadzwa Musarara said the review would improve maize deliveries to the Grain Marketing Board (GMB).

“The grain milling industry welcomes the upward review of maize producer price by Government,” he said. “This move will facilitate the quick and significant maize deliveries to GMB and it represents fair value of the maize.”

Mr Musarara distanced GMAZ from price hikes of maize meal by some retailers who misinterpreted the decision by Government.

“However, the GMAZ distances itself from price increases of maize meal that are reported to have been made by some retail outlets as a misinterpretation of this decision,” he said.

“The GMB maize price to millers remains unchanged and no price increases by millers have been effected on account of upward review of producer prices.”

Mr Musarara urged retailers to always adhere to published maximum and recommended prices and said GMAZ price monitors will be monitoring the situation to ensure compliance.

“GMAZ is now calling on all retailers selling its products to observe the published maximum recommended prices of maize meal which are RTGS$ 18,90 per 10 kilogrammes of roller meal,” he said. “The GMAZ price monitors are in the market monitoring the situation.”

Government has increased the maize producer price to $1 400 per tonne, from $726 to enable farmers to go back to the fields in the forthcoming summer cropping season, but immediately warned retailers against increasing the price of mealie-meal since the GMB buying price remains unchanged.

Cabinet said the maize producer price of US$242 per tonne be paid in RTGS dollars, but at the prevailing interbank market rate.

In April, Government approved the increase of maize producer to $726 and small grains, wheat, soyabeans and cotton.
Wheat prices were set at $1 089,69, soyabean ($918) and cotton ($1 950) per tonne. At the time, Government also approved a 38,5 percent subsidy on the selling price to millers to prevent increases in the retail prices.