By DELPHINE ZULU –
THE Millers Association of Zambia (MAZ) has urged the Government to immediately ban the exports of maize by the private sector as the trend will lead to escalating mealie meal prices.
The millers said Government should immediately ban international traders from exporting the commodity because they were buying up all the available maize at inflated prices, leaving local millers with virtually no stocks.
MAZ president Allan Sakala said at a Press briefing yesterday that the international traders were buying maize at a high price of K1,950 per tonne or K97.50 per 50 kilogramme bag.
He said the Zambian Government should emulate countries like Zimbabwe which had imposed a ban on importation of mealie meal to protect its local millers against competition from other countries including Zambia.
Mr Sakala said the Government should only allow the Food Reserve Agency (FRA).
He said the current situation was not making any economic sense and it was killing the milling industry, and the Zambian consumers would bear the consequences.
Mr Sakala said the depreciation of the Kwacha was an indication that international traders were buying the Zambian maize at a cheap price against the dollar, thereby creating an artificial increase in mealie meal prices of between K10 and K15 within Lusaka.
“If exports are not banned, millers will be forced to increase mealie meal prices and consumers should brace themselves to pay up to K100 per 25kg of maize. As MAZ we are advocating for an immediate ban on the issuing of maize exports and only allow FRA to do so,” Mr Sakala said.
Mr Sakala said that international traders were buying all the stocks for export at inflated prices making an increase in the price of maize of close to 25 per cent in just two months of the maize marketing season.
He said in addition to the escalating maize prices, millers were already burdened by up to 50 per cent in loss production due to load-shedding and general power outages coupled with the latest proposed increase in Zesco tariffs slated for November 1 this year.
“These same traders are able to pay up to US$220 per tonne for export and under the current rate that equates to K2,500 per tonne or K125 per bag,” Mr Sakala said.