• The unprecedented high price of the staple food surprisingly comes against a background of the heavy yield that has seen the country projecting a harvest of 3,350,671 tonnes from its 2013/14 farming season.

By SYLVESTER MWALE –
IT is undeniably shocking that mealie-meal prices in Zambia have remained high despite the unprecedented bumper harvest announced in May.
It is certainly clear that the unfettered enjoyment of the liberalised economy has crashed with the severe need to protect citizens from exploitation.
Perhaps what is even more disheartening is that there is seemingly little attention and effort to address the status quo while consumers have continued to face the harsh reality of getting a 25 kilogramme bag of breakfast at more than K70.
“There is no way the situation can be left like this,” said Adonia Banda, a 70-year-old woman of Lusaka’s Kanyama township who is keeping is a family of six children.
“Why can’t the government act, this could not happen in our days because Kaunda could not keep quiet and everyone knew that you cannot increase the price of food as long as you want,” Mr Banda added.
The unprecedented high price of the staple food surprisingly comes against a background of the heavy yield that has seen the country projecting a harvest of 3,350,671 tonnes from its 2013/14 farming season.
Interestingly, past experiences in the agriculture sector have followed the theory of supply and demand where a bumper harvest has been accompanied by low and stable mealie-meal prices.
A survey during the week showed that a 25 kilogramme bag of industrially milled maize costs between K70 and K80 depending on the part of the country one is buying from.
The border town of Chilabombwe is said to be experiencing the highest level of exploitation with the commodity fetching at more than K80.
While this price is already beyond reach for an average Zambian, there is another indirect cost incurred by the lower class that are forced to buy in pieces commonly known as pamela.
In this regard, the poor people who are buying in bits in fact pay even more than the middle class which is able to purchase a 25kg bag at once.
Is the Government doing enough to protect the consumers, or harmonise the country’s free economy and the seemingly exploitation of the citizens? Should Government consider price control in the mealie-meal industry?
“The blame should go to the government because it has allowed the private sector to exploit the consumers,” said Zambia Consumers Association (ZACA) executive secretary Samuel Simutunda.
“The private sector does not care because it is interested in making profit. Therefore, the Government can consider setting the price just for this sector alone in the interest of the citizens.”
Mr Simutunda also urged the government to use the Industrial Corporation to come up with milling plants that would compete with the private sector in order to control the price of the staple food.
The Civil Society for Poverty Reduction (CSPR) is equally concerned that the much publicised bumper harvest has not resulted into reduced mealie-meal prices.
CSPR programme manager, Makani Mzyece, however, noted that while the country has recorded exceptional bumper harvests illegal export of the staple food may result into continuous high price.
“There is so much maize that is being exported illegally and if that continues, there will be nothing for consumption in Zambia meaning that the price will continue to be high,” he said.
Individual consumers are equally disheartened by the state of affairs and unless something is done to bring down the cost of mealie-meal, the majority may feel neglected.
Many feel that while Zambia is a liberalised economy, high prices have been instigated by cartels in the food sector.
Albert Manda however noted that the high cost of the staple food could be reduced by reducing the cost of production on both at the farming level as well as milling level.
“In addition to that, let the market forces dictate prices but with firm control and monitoring considering mealie-meal is an inelastic commodity meaning the price changes does not affect the quantity demanded,” he said.
However, the millers have been adamant that the current price of mealie-meal is appropriate as it reflects the market value.
“The bumper harvest is just one aspect and cannot determine the price of mealie-meal,” said Millers Association of Zambia MAZ president Allan Sakala. “There are other aspects such as electricity tariffs and water.”
He said the recent upwards adjustment of electricity tariffs as well as that for water had made it difficult to bring down the prices of mealie-meal.
“You must also realise that the millers recently reduced mealie-meal prices from K70 to K63 and whether the retailers also reduced is something else,” he said.
The Government has gotten a fair share of sticks for seemingly allowing the free economy to flourish amid a loud outcry of exploitation of citizens by the private sector.
President Michael Sata early this year threatened to use price control if the price of the staple food continued to escalate, though his proposal attracted disapproval from economists and the private sector.
However, Agriculture Minister Wybur Simuusa has once again sparked the debate with his recent remarks that the government may consider introducing price control.
“If in the near future there is no change with regards the mealie-meal prices, government will have to come in and regulate the soaring mealie-meal prices,” Mr Simuusa said.
It is worth remembering that high prices of mealie-meal on a smaller scale formed an important part of the revolutionary build up that resulted into the downfall of the first Republican president Kenneth Kaunda in 1991.
Therefore, while price control goes against the tenants of modern economy, the seemingly failure to bring down the price of staple food is a source of concern that needs urgent attention.
It is important that the government addresses factors such as high electricity and water tariffs that have contributed to increased cost of production by the millers in order to reduce the cost of staple food.
Unless that is done, the much publicised bumper harvest will have little or no meaning at all.