Grain Millers Association of Zimbabwe (GMAZ) has distanced itself from the new bread prices announced by bakeries saying they have not increased flour prices to warranty such a hike.
According to a leaked letter from Lobels Bread to OK Zimbabwe last week, the price of a standard loaf bread had increased to $2.00 and $2.20, wholesale and retail respectively.
However GMAZ Chairman, Tafadzwa Musarara said the announcement came as a shock to the sector as the millers were not notified in advance.
“The latest price increase came as a shock to the wheat milling industry as the millers where not notified in advance neither consulted on the matter prior to publication of the hiked prices as it is the custom and norm.
“Since the previous bread increase a month ago from$1.00 to $1.10 per loaf,wheat bakers flour prices to bakers has not increased.The current wheat bakers flour prices to bread has not increased,” he said.
Musarara confirmed receiving a nostro payment from the Reserve Bank of Zimbabwe to procure wheat bakers flour prices.
“The current wheat bakers flour prices to bakers is indexed on 1.1 on the USD to Bond, this has been due to nostro payment support we receive from Reserve Bank of Zimbabwe to which we are most grateful.
“The Grain Millers Association of Zimbabwe therefore wish to make it categorically clear to the authorities and the consumers that it is impossible to attribute any bread prices to bakers flour, which is the main ingredient.
“We urge our colleagues in the baking industry to observe standing consultations and notifications protocols should they need to increase bread prices in future,” added Musarara.