Basic food prices go up

Source: Basic food prices go up – DailyNews Live

John Kachembere and Ndakaziva Majaka

HARARE – The prices of basic goods, including foodstuffs, have soared in
recent weeks, as the country’s economy continues to collapse – compounding
the misery of long-suffering Zimbabweans.

As a result, crisis-weary ordinary citizens told the Daily News yesterday
that it was imperative for the government to take urgent measures to
mitigate the situation, if a major socio-economic crisis was to be
avoided.

Among the basic foods whose prices have shot up in recent weeks are beef,
poultry products, vegetables, fruits, dairy products, cooking oil, sugar
and rice.

Beef is now sold at $7 per kg from an average of $4,50 in October 2016,
while a 2-litre cooking oil bottle, which used to trade at $2,99 before
the import restrictions which were imposed by the government in June last
year now costs an average of $3,40.

The executive director of the Consumer Council of Zimbabwe (CCZ), Rosemary
Siyachitema, told the Daily News yesterday that while her organisation was
yet to compile the basic food basket data for January, her organisation
had since last December witnessed the price jumps.

She said the December 2016 food basket stood at $133,06 – up from the
November figure of $128,34. In October, the figure stood at $125,37.

According to the CCZ, the price of cooking oil went up in December to
$1,49 from $1,39 in November for a 750ml bottle.

Harare housewife and mother of three, Anesu Mandebvu, implored the
government “to stamp its authority” and call delinquent retailers to
order.

“We are dying slowly because our income cannot fulfil our needs,” she
lamented.

“In fact, we can only afford to buy fish once or twice a week,” she said
adding that her children sometimes refused to eat the cheap and
poor-quality food she now cooks for the family.

When the government introduced Statutory Instrument 64 of 2016 (SI 64) in
June last year, banning a number of imported products, the idea was to
help protect struggling local industries which were operating at an
average of 35 percent of their installed capacity.

However, the move effectively curtailed competition from foreign players
and has resulted on average in an increase in the cost of living, through
price increases.

Elisha Chandawana, who owns a supermarket in the Harare high density
suburb of Kuwadzana, said the increase in food prices had led to a
reduction in demand.

“Our sales have dropped because families cannot cope with the continuous
increase in prices,” he added.

Economic analyst, Francis Mukora, said some of the more recent price rises
were not justified, adding that some supermarkets and manufacturers were
profiteering as figures showed that food prices had gone up far faster
than can be justified.

“Profiteering happens. There are cases where people make inappropriate
margins along the distribution system, and this is what is happening with
some retailers,” he said.

“The priority for supermarkets is to get the appropriate stock on and off
their shelves as fast as possible, and increasing prices should not be
part of the game. Retailers are taking advantage of stifled competition to
rip off consumers,” Mukora added.

However, Confederation of Zimbabwe Retailers (CZR) president, Denford
Mutashu, claimed yesterday that the market had not experienced any price
increases.

“This is actually news to me because prices have actually gone down in the
outskirts. I am coming from Mt Darwin. As CZR, what we see is not prices
going up pe ser, but during the festive season retailers refine prices to
levels that attract traffic.

“But after the holidays, they revert to the normal prices … cooking oil
prices have actually gone down,” he said.

Mutashu also said food prices had stabilised in January, adding that the
declining aggregate demand had left retailers with no room to increase
prices.

“In fact, price increases are detrimental to retailers mainly because of
the competition between informal and formal retailers. Consumers will walk
away.

“Retailers do not increase prices, they are just a conduit and act on how
manufacturers peg prices against supply and demand,” he said.