Bread price in Nampula province rises between 1 and 3 meticais from today

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Bread price in Nampula province rises between 1 and 3 meticais from today

2:14 CAT | 06 May 2022

in file CoM

Bread in Nampula province becomes more expensive as of this Friday. Prime Minister Maleiane has reiterated that there will be no wheat subsidy, but has announced that the government will increase the number of social assistance recipients from one to two million across the country.

Mozambique’s most-consumed food will be more expensive in Nampula province as of this Friday.

The rise in the price of bread was announced through a note posted in bakeries, signed by the Nampula delegation of the Mozambican Association of Bakers (AMOPAO), with an increases between 1 and 3 meticais posted.

This is one more ripple effect of the cost of wheat in the international market, influenced by the Russia-Ukraine war.

Russia and Ukraine between them account for 30% of global wheat exports and supply millions of tons of wheat to food import-dependent developing countries in the Middle East and North Africa (MENA), South Asia, and sub-Saharan Africa.

The director of a mill that processes wheat in the Special Economic Zone of Nacala, with a capacity of 10,000 tonnes per month, confirms that the price of a bag of wheat has risen a lot and talks about the available stock.

“We warned our customers – the bakeries – about the cost of wheat, which has risen from 1980 to 2280 meticais per 50 kg bag,” said Eugeni Matikiti, country head of Bakhresa Grain Milling Mozambique. “We have enough wheat to supply four provinces for three months,” Matiki added.

The prime minister recognises that the rise in the price of the main products that the country imports is above the projections that the government had made when drawing up the economic and social plan for 2022 and the respective budget, but reaffirmed that subsidies are to be forgotten. To minimise the impact of external shocks, the executive is cutting some fees and taxes on imports of the main commodities, such as fuel, he said.

“When we made the program and budget for this year, we expected the increase in raw materials, but not of the magnitude that was seen. This is abnormal, but we are working, in the sense that the economy works and the impacts are more moderate,” Maleiane advanced.

As for the most needy, Adriano Maleiane talks about the increase in the number of people assisted through the National Institute of Social Action (INAS), at national level.

“Because of all this, we are predicting an increase in what we were giving to about one million people and the prediction is for one million more. Therefore, it is a program that is organised to at least mitigate (the problem). We are not going to solve it for everyone, but, at the very least, the policy is not to leave anyone without support,” the prime minister said.

The cost of living, determined by inflation, could affect economic growth projections for this year.

Source: O País