Mozambique: Government seeks to freeze bread prices

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Mozambique: Government seeks to freeze bread prices

4:05 CAT | 17 Nov 2020

File photo: Lusa

The Mozambican government and the Bakers’ Association (AMOPAO) have been holding negotiations intended to avoid an increase in the price of bread, according to a report in Tuesday’s issue of the Maputo daily “Noticias”.

Recently, bakers in Maputo and the neighbouring city of Matola stressed the need for a price increase because of increased costs of production. They say the price of wheat flour has risen three times since the start of this year.

The bakers say that a sack of 50 kilos of wheat flour, which the milling companies sold for 1,120 meticais (about 15 US dollars, at current exchange rates) in January, now costs 1,800 meticais.

The Minister of Industry and Trade, Carlos Mesquita, said the government, in partnership with AMOPAO, has been analysing the production costs in an attempt to find alternatives. The bakeries have also pointed out that the continued depreciation of the Mozambican currency, the metical, is making it more expensive to import raw material.

“The government has been holding negotiations with AMOPAO. We are seeking to convince the association and the importing companies to halt any price rise,” Mesquita said, after a visit on Monday to the National Statistics Institute (INE).

He also guaranteed that there will be no shortages of basic foodstuffs during the coming festive season.

The Covid-19 pandemic had led to uncertainties about the availability of food, but Mesquita declared “the situation is under control”.

“We have normal controls every year”, he said, “but this year we have tripled our attention”, paying particular attention to the import of raw materials such as wheat flour.

He added that there has been a positive reaction from Mozambican businesses, which have assured his Ministry that there is enough food available to supply the market for two to three months.

“In principle, there’s no reason for alarm”, he said. “It’s all under control. We have our market producing. Eggs and chickens are being produced as well as other products such as vegetables”.

Mesquita said an inter-ministerial team has been meeting every week to study the market “and is in contact with businesses to ensure that the festive season runs smoothly”.

Source: AIM