The average price of bread is set to decrease with effect from tomorrow according to the Grain Millers Association (GMAZ).
Addressing journalists in Harare, GMAZ chairman Tafadzwa Musarara said the reduction has been necessitated by the re-establishment of the foreign currency auction system by the Reserve Bank.
“The price of bread, a necessity in all households, had become expensive and indeed worsened the cost of living. Following the re-established of the Foreign Currency Auction System by Reserve Bank, GMAZ has had fruitful discussions with RBZ Governor, Dr. Mangudya, whereupon foreign currency allocations to millers are being made,” said Musarara
He said the auction system had seen a reduction in the price of bread flour and bakers have committed to reduce the price of a standard loaf of bread.
“As a result, on behalf of wheat millers, I am pleased to advise that the cost of bread flour, with effect from 3 July 2020, has been reduced from ZWD$3 150 to ZWD2 136.89 per 50kg.
“Consequently, the bakers have committed to reduce the price of a standard loaf of bread from wholesale price of ZWD70 and retail price of ZWD79 to wholesale price of ZWD 59 and retail price of ZWD 66.From now on, our prices will be guided by the Foreign Currency Auction outcomes.” he said
In May, Musarara said GMAZ advised millers that they had run out of wheat and millers had to import on their own to meet market requirements resulting in millers resuming imports using free funds.
Bread price had over the past two months increased from ZWD18 to ZWD79 per standard loaf and had also affected the rest of confectionary products.