SO the prices of tomatoes and other vegetables contributed to the reduction in the rate of inflation for Zambia in March 2015.
As we are about to end the year, I have decided to revisit this article.
The national average prices of tomatoes in March reduced by 10.9 per cent while those of rape and cabbage went down by 4.7 per cent and 7.8 per cent, respectively.
This is according to the Central Statistical Office (CSO) monthly bulletin for March which was released on Thursday the previous week.
The reductions in the prices of tomatoes, rape and cabbage contributed to the overall drop in the inflation rate for March to 7.2 per cent from February’s 7.6 per cent.
According to Economic Times of India, inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on-year basis.
It effectively measures the change in the prices of a basket of goods and services in a year and, in Zambia, it is measured as the all items Consumer Price Index (CPI).
The three items – tomatoes, rape and cabbage – are among 17 others which recorded reduced prices out of the national average retail prices for 40 selected products.
Given the perceived insignificance attached to them, their contribution, in my view, shows how important the role of every player in the economic sector is towards meeting the national economic targets.
Believably, the prices of these three vegetables, on average, came down due to the prevalence of the products on the market then.
Yes the market was flooded with tomatoes, rape and cabbage.
But, imagine if these commodities had flooded the market throughout the year! What impact would that have had on the prices of these commodities and ultimately on inflation!
Further, let us take it that all locally-sourced commodities were to be as prevalent as these three items were, throughout the year!
The current inflation rate would drastically come down and remain low.
This is further assuming that there will be elasticity in the prices of the commodities without traders’ unfair practices like cartels, price fixing and connivances.
Notably, in the period under review, the national average retail prices for mealie-meal (breakfast) moved by a meagre 61 ngwee or 0.6 per cent.
This is despite the government’s efforts to help to reduce the prices of
the staple food.
These efforts had culminated into the negotiation, firstly for a K4-reduction in the wholesale prices of the commodity.
Consequently, the retail prices of the commodity should also have been adjusted by at least K4.
That could have posted a 5.6 per cent reduction on the overall prices of breakfast mealie-meal.
Imagine the impact that could have had on the rate of inflation!
Additionally, the contribution towards the reduction in inflation by the tomatoes, rape and cabbage showed that the current economic malaise the country is experiencing can mainly be sorted out using local remedies.
Noticeably, among the 40 items listed by the CSO, dried kapenta (Mpulungu in particular) recorded the highest increase in the prices, of 11.4 per cent.
The reason was obvious! With the observance of the annual fishing ban which ended on February 28, 2015, the commodity was still in short  supply in March, hence the higher prices.
As a permanent remedial measure, why not come up with ways of ensuring constant flooding of the market with fish throughout the year, including the fish ban period?
This idea could be replicated in other sectors to ensure mass production of goods on which Zambia has comparative advantages.
The splendid performance in the local production of various goods and services would have greatly mitigated the adverse effects of the continued reliance on some inevitably imported goods.
There was equally need to limit the appetite for imported goods, unless where it was unavoidable because of the non-availability of alternative goods, locally.
This, of course, could be a toll order considering that people nowadays consider anything imported as being superior to the locally produced goods!
Probably, this is why it is important to come up with deliberate measures of promoting consumption of local goods in the country like others, including South Africa, are doing.
This, however, brings back the issue of quality and pricing of locally produced goods.
Unfortunately, more often than not, locally produced goods are relatively pricier than most imports, and, therefore, lowly demanded.
This reminds of the issue of the ban on the importation of edible oils which had been received with mixed feeling.
Some traders and consumers were not happy about the government’s move because the imported edible oil was, according to them, relatively cheaper than the locally produced.
It is, therefore, a vicious circle and sometimes one wonders what should come first whether the reduction in the prices of the local goods or the discouragement of the imports of substitute goods.
For comment, call: 0955431442, 0977246099 or email: jmuyanwa@gmail.com