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Wednesday, Jun 19th
Headlines:
Grain millers await Govt intervention PDF Print E-mail
Saturday, 07 July 2012 20:40

Sunday Mail Reporter
The Grain Millers’ Association of Zimbabwe (GMAZ) is anxiously awaiting a Government review of import tariffs of wheat flour upwards in order to help stem the continued leakage of resources and revive the local milling industry.


Chairman of the GMAZ Mr Tafadzwa Musarara told The Sunday Mail that the association will follow the forthcoming mid-term fiscal policy review expected this week with interest.
In a recent Press statement, GMAZ noted that Government had imported 45 million kilogrammes of wheat flour valued at $27 million in the past four months.

He also said the figures from the Zimbabwe Revenue Authority’s (Zimra) Ayscuda System showed that the cost of imported wheat flour is relatively cheaper at $493,53 per tonne compared to the price of $510 per tonne which is quoted by the Grain Marketing Board on wheat sold to local millers.

This, he noted, was destroying local production.
“The official figures from Zimra show how foreign wheat flour has substituted local production and this is self-defeating,” he added.

Mr Musarara said the local market has enough wheat to supply the nation even without the imported flour.
“As we have mentioned before, there is currently 98 000 MT (metric tonnes) in the private silos and another 48 000MT in Government silos.

“If customs are reviewed upwards, then viability is regained and we will have an agreement with the wheat suppliers to supply a six-month cover in three months,” he said.

Figures from GMAZ indicate that over 18 000 people have lost their jobs in the industry during the past five years due to the influx of cheap imported flour.
Formerly, Government allowed millers to import flour from Asia, Russia, Turkey and Mozambique in order to mitigate shortages in the country.

Mr Musarara last month said “foreign traders are dumping flour in the country and killing local wheat production”.
In a statement released in May, GMAZ also highlighted that Government had “regrettably” failed to control flour imports, hence the need for further intervention by the finance ministry. It is believed that the smuggling of wheat flour remains rampant due to poor co-ordination of State departments at the border posts, and corruption.

 

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