TRADERS ‘HIDE’ MAIZE

Sat, 17 Feb 2018 10:46:16 +0000

…to create artificial shortage and push mealie meal prices up

By BUUMBA CHIMBULU

MAIZE traders  ‘‘hiding’’ their maize stocks in a bid to create an artificial shortage of the commodity and thereby push mealie meal prices up, have been condemned by the Millers Association of Zambia (MAZ).

However, when contacted,  Grain Traders Association of Zambia (GTAZ) executive director, Chambuleni Simwinga, refuted the allegations of holding on to the grain saying most millers were currently owing them over US $400,000 for the stock which they had purchased.

Mr. Simwinga explained that millers were not paying for the stock which they had collected from traders, thereby making it difficult to trade.

“We are not holding on to any maize and there is no shortage of maize. The problem we are having is that of payments. Millers are not paying, we are owed over US $400,000 by them. They want to buy stock but they have not been paying us,

“Even if we hold it, where are we going to take it? There is no basis for holding it. We are also struggling with the stock. So let them pay and they will get the maize,” he said.

He further said other millers were accessing the stock because they were paying.

Mr. Simwinga also emphasised that they had had not increased the prices for maize saying a tonne was currently trading between US $1,500 and US $1,550.

“These millers are looking for a moment when Government will allow them to buy maize from the Good Reserve Agency. It is the same old story. We have gone through this cycle so we were expecting it. For as long as Government does not stand its ground and allows them to buy maize from FRA, they will never change,” Mr. Chambuleni said.

However, Millers Association of Zambia (MAZ) has insisted that traders were holding on to maize and not releasing it on the market to push prices up.

A 25 kilogrammes bag of breakfast mealie meal is currently trading between K66 and K69 and K55 and K59 for roller meal respectively.

According to MAZ chairperson, Andrew Chintala, the maize on the market was being manipulated as most traders were still holding on to the commodity.

Mr. Chintala said those who offloaded the maize were selling it at an expensive price saying a tonne was currently trading between $1,650 and $1,700 from $1,200, the price millers were buying it at the beginning of the season.

Mr. Chintala said in an interview that mealie meal prices may not stabilise as long as maize was scarce on the market.

Mr. Chintala appealed to traders holding on to maize to release it on to the market and stabilise the mealie meal prices.

“We know there is still maize in people’s hands and so if they do not release it on the market, how do millers access it? So that is a very worrisome development. We hope traders can offload the maize to stabilise the mealie meal prices,

“As long as maize remains scarce on the market it will be difficult for us to run effectively because there will be nothing we will be milling. A few brands that I have seen have increased by about K1.50, so it is minimal,” he said.

Mr. Chintala further said the prevailing situation was a concern to millers as well.