Zimbabwe’s central bank has released $10-million for wheat imports to battle mounting bread shortages in the wake of an untenable state-imposed price ceiling, a minister said on Friday.
The Southern African nation has been facing bread shortages since Monday as bakers slashed supplies to retailers, complaining that escalating production costs meant the government-imposed price of a loaf was no longer viable.
”The central bank has availed us $10-million for the importation of wheat,” Industry and International Trade Minister Obert Mpofu said.
”This is an ongoing exercise by the central bank, which is meant to augment the wheat shortages in the country right now.”
Mpofu said the money would also be used to buy ”some wheat stocks already in a number of bonded warehouses across the country”.
Bread sections in many stores across the country are currently empty while others have only a few loaves in stock after a police crackdown on bakers and retailers who had increased the price of bread without state approval.
Retailers raised the price of a standard loaf on Saturday from the official Z$200(US80c) to Z$330 in defiance of government-imposed ceiling.
Following the price hikes, police were deployed across the capital and on Sunday an operations director with a leading baker was arrested on charges of flouting the price control regulations.
Zimbabwe’s annual wheat requirement is about 400 000 tons. There has been a consistent deficit since its controversial land reforms of 2000 which led to a slide in agricultural output. It currently imports about 265 000 tons.
President Robert Mugabe’s government introduced price controls four years ago to fight a burgeoning black market in staples such as cornmeal, cooking oil and bread in the wake of a meltdown and imposed a fine of Z$1-million for violators. — Sapa-AFP