Mozambican government continues to seek alternatives to bread price rise

Login

Register

http://www.clubofmozambique.com/

Mozambican government continues to seek alternatives to bread price rise

4:16 CAT | 07 Jul 2016

The Mozambican government is continuing to look for ways to avoid the price of bread rising, and will present a solution in the coming days, the minister of industry and trade has said.

“We continue to explore ways to find alternative solutions,” Max Tonela told reporters after the inauguration ceremony of new ministry officials.

Acknowledging that the economic situation was complex, the minister said that the government would shortly present a solution to avoid the price of bread rising and ensure stability in future.

The Mozambican Association of Bakers (Amopao) announced last week that the price of bread would have to rise due to the increased cost of raw materials and the recent rise in the sector’s minimum wage.

The Mozambican government vetoed the rise, stating that consultation had not taken place and that the executive was already analysing the situation.

According to the bakers, the 250 gram loaf should be increased from 7.5 meticais (0.10 euros) to nine meticais (0.12 euros) and the 200 gram loaf now costing six meticais (0.08 euros) should rise to seven meticais (0.09 euros).

Amopao maintains that 98 bakeries have closed in the last six months due to the increase in flour prices.

This is the second time this year that the Mozambican government has suspended a bread price rise. In April, the Minister of Industry and Trade ruled against an increase in the price of bread proposed by Amopao in March.

The last time the country saw a rise in the price of bread was in October 2015, when a 250 gram loaf rose from six meticais (0.12 euros) to 7.5 meticais (0.15 euros), 200 g increased from 4.5 meticais (EUR 0.09) to six meticais (EIR0.12) and 150 grams went up from three meticais (EUR 0.06 euros) to 4.5 meticais (EUR 0.09 ).

In 2010, the rising price of bread and other commodities caused a popular revolt in Maputo, killing several people in clashes between the population and the police.

Source: Lusa