Wed, 21 Feb 2018 07:50:51 +0000
…millers insist government will have to release FRA maize
By BUUMBA CHIMBULU
THE mealie meal trade war has intensified with millers insisting that Government has to release maize from the Food Reserve Agency (FRA) if traders continue “hiding” maize from the open market.
They also challenged traders to release the grain to stop mealie meal prices from rising.
According to the Millers Association of Zambia (MAZ), some of its members have since shut down production due to lack of maize on the open market.
MAZ chairperson, Andrew Chintala challenged those accusing millers of trying to blackmail Government to offload maize on the open market.
Mr Chintala said once that was done, it would stop the current rising mealie meal prices and en-sure that millers did not shut down production for lack of maize.
“We are not trying to arm twist or blackmail FRA to offload maize, what we are saying is a reality, there is no maize coming in on the open market. So those saying we are trying to blackmail FRA, let them enter the market and see what is going on,
“But if they (traders) do not release it, why should we shut down the mills when FRA has got the maize? So if we continue struggling to access maize, definitely we might go to FRA and knock on their doors for the commodity because we cannot afford to shut all the mills,” he said. Mr. Chintala millers were aware that there was still close to one million tonnes of maize in Zambia hence his appeal to those with the grain to release it.
And on allegations that some millers were owing traders money hence not accessing maize, Mr. Chintala said only one or two were in that situation but quickly mentioned that that should not be the basis for traders not to release the grain.
“If traders do not release maize, why should we starve the nation? If the situation does not improve, definitely we will be compelled to engage Government to start releasing maize on the market.
“It is not in our interest that we shut down our mills. The more millers shut down, the higher demand for mealie meal and that will will trigger price increases,” Mr Chintala said.
This week, ZNFU accused millers of blackmailing government to make a political decision to release maize from the FRA by deliberately keeping mealie meal prices high while refusing to buy the crop from farmers.
ZNFU president Jarvis Zimba it would be suicidal for government to release FRA maize now with-out a crop forecast for the next season.
Mr Zimba said there was no maize shortage. “There is plenty of maize, but millers who did not buy forward must now pay more to cover the cost of fumigation, storage and related costs.”
