Enough stocks for festive season, says industry

LOCAL industries have adequate stocks of basic goods and commodities to meet increased festive season demand across the country with the Government and Business Member Organisation (BMOs) satisfied with production levels while ensuring that exchange rate and price stability are maintained for the welfare of the consumers.

Industry and Commerce Minister, Dr Sithembiso Nyoni, said this in a statement following her meeting with top business leaders on Friday where they discussed the prices and market supply situation of basic commodities, ahead of the upcoming festive season.

Zimbabweans are geared for the Christmas and New Year’s holidays with several companies closing operations for annual holiday shutdown while most businesses including public transport operators are already enjoying brisk businesses as families do their shopping with some travelling to their rural homes.

The growing demand for goods during the festive season has piled pressure on supplies with some traders taking advantage of the situation to maximise profits through increasing prices.

This has seen some formal retail shops temporarily running out of stock as they compete with the growing informal grocery shops, which have also increased their stocks but only sell in cash using foreign currency.

Due to these demand and supply dynamics, recently there has been a noticeable disparity in pricing levels with basic commodities such as cooking oil now ranging from $25 000 and $28 000 for a 2 litre bottle in formal shops or us$3,20 to us$4,70 depending on brand and outlet. A 2kg of flour now costs between $15 000-$17 000, 1kg sugar $9 549 from about $8 000 a few weeks back, with a 2kg bag of rice ranging from $17 000-41 000 depending on brands and outlets.

Minister Nyoni said the holiday season has always been characterised by hyper-activity across and the world over as businesses beef up stocks with various goods, in anticipation of increased spending as consumers buy various gifts for their loved ones.

“Let me assure the nation that industry has enough stocks of basic commodities and that businesses will immediately work on modalities to ensure that there will not be any sharp price increases,” said Dr Nyoni.

She said the crunch meeting with business leaders drawn from different sectoral organisations such as the Grain Millers Association of Zimbabwe, National Bakers Association, Oil Expressors Association of Zimbabwe, Confederation of Zimbabwe Retailers, Zimbabwe Sugar Sales, and the Zimbabwe Sugar Association, collectively agreed to collaborate in ensuring sustained market stability including keeping prices under check.

This comes as the ministry has recently observed some profiteering tendencies by some players, which Dr Nyoni said must be curtailed in order to protect consumers and ensure the festive mood is not spoiled.

“As a ministry, we had observed an emerging trend, of increases in the prices of basic commodities during this (last) week, wherein laundry soap has gone up 16 percent, cooking oil by 13 percent, bread by 12 percent and mealie-meal by nine percent.

It was pleasing to note that the price of sugar has remained constant,” said the minister.

“As the ministry responsible for commerce and industry, we have the onus to get to the bottom of this and nip any negative developments in the bud.

“We have witnessed and enjoyed price stability for a very long time now, ever since the Treasury and the Reserve Bank of Zimbabwe instituted a tight monetary control regime and this must be maintained, to promote consumer welfare.”

Minister Nyoni said the Government has always worked closely with the private sector in growing the economy hence the country has continued to enjoy a normal supply of basic commodities on the market, with no shortages and crises, as previously happened in the yesteryears.

“We’re grateful to the business players that have joined hands with the ministry to ensure that we do not allow any price increases, particularly at this point, when families will be celebrating Christmas and the New Year, indeed a time when basic commodities should not be found wanting on the market,” said Dr Nyoni.

“We also agreed that the business community should trade fairly and desist from profiteering and from creating artificial shortages.”

The minister said her meeting with business leaders on Friday was very fruitful and paid tribute to stakeholders for working closely with the Government.

Mr Comfort Muchekeza

Contacted for comment, Consumer Council of Zimbabwe (CCZ) Matabeleland regional manager, Mr Comfort Muchekeza, concurred with the ministerial statement and urged consumers to take advantage of festive season specials and avoid unnecessary spending, which might end up affecting their budgets for valuable things like school fees and other needs.

“The demand for most basic products increases during the festive season and based on previous trends, suppliers often take advantage and raise their prices during this period,” he said.

“The November 2023 basket for a family of six increased by 8,56 percent from October and the most contributing factor was the food basket.”

During the snap survey conducted on Friday, the Chronicle news crew observed that some retail outlets were now selling some of their goods solely in United States dollars, defying the Government’s multi-currency regulations, which stipulate that consumers should be allowed to pay for goods and services using the currency of their choice including local currency.

“Those rejecting the use of other currencies or any denominations in local currency should be reported to monetary authorities or law enforcement agencies as it is illegal,” said Mr Muchekeza.-chronicle