Millers laud govt over wheat import restriction

Millers have lauded the government for putting restrictions on wheat imports, saying the move will spur local contractors to increase output.

BY TATIRA ZWINOIRA

In his 2017 National Budget statement last week, Finance minister Patrick Chinamasa removed the importation of wheat from the open general import licence to boost local production on the back of a declining milling industry.

Chinamasa said despite support measures provided by the government to the milling industry, the number of producers shrunk to 37 in 2016 from 368 in 2007 due to competition from wheat flour imported from the region under bilateral trade arrangements.

He proposed to amend bilateral rules of origin on flour, so that preferential treatment was granted to flour milled from wheat grown in the country of export and proposed to remove wheat flour from the open general import licence with effect from January 1, 2017.

Grain Millers’ Association of Zimbabwe (GMAZ) chairperson, Tafadzwa Musarara said the industry was grateful that its recommendations had been taken on board.

“Bakers, who had already resorted to using 100% local wheat, notably Bakers Inn and Proton, have been able to obtain more than adequate local flour, produce high quality bread on the market at the same price with those bakers, who had been importing flour. So, who has been benefiting from these flour imports? Certainly, not the consumers,” he said.

“We expect that our wheat contract support hectarage will increase tremendously next year, buoyed by this positive policy change. Further, we welcome the proposed amendment on the preferential treatment granted to flour milled from countries that do not grow wheat, but have a subsisting bilateral trade agreement with Zimbabwe.”

Musarara said this would discourage wheat flour imports and save the local flour milling industry.

Research from the government showed about 100 000 hectares was needed for the production of maize and wheat.

The research further showed a hectare would cost an average of $1 500 for the two crops, which would add up to $150 million needed to fund both maize and wheat production.