Govt Dismisses Fears Of Bread Price Increase

The government has moved to allay fears of an imminent increase in bread prices following the introduction of Statutory Instrument (SI) 87 of 2025.

The new regulations govern the importation and local procurement of grains and oilseeds, establishing a framework that requires processors to gradually increase their sourcing from local producers.

Authorities say the measure is intended to protect local farmers by guaranteeing them reliable buyers, or off-takers, for their produce. However, wheat is specifically excluded from the SI’s provisions.

Speaking to State media on Wednesday during the commissioning of AI-powered smart silos at the Grain Marketing Board depot in Mutare, the Permanent Secretary in the Ministry of Lands, Agriculture, Water, Fisheries and Rural Development, Obert Jiri, said there was no reason for bread prices to rise, as wheat remains unaffected by the new regulations. Said Jiri:

“SI 87 of 2025 is allowing the importation of grains by agro-processors, millers and stock feed manufacturers, so it essentially allows importation of that.

“But, also, we are in the same vein trying to protect our local farmers so that they have off-takers, who can get their grain when they produce.

“It also emphasises that these millers and stock feed manufacturers must support the local industry and local farmers.”

Jiri said the SI allows millers and agro-processors to legally contract farmers to produce at least 40 percent of their raw material requirements. He said:

“So this is what essentially the law is addressing. The Minister of Lands, Agriculture, Fisheries, Water and Rural Development, from time to time, will issue, through the AMA Act, guidelines on how the SI unrolls.

“So currently, the SI is affecting maize importation, where the minister has guided that the agro-processors will pay US$10 per tonne on application for the import.

“The rest of the money that is within the parity would then be utilised by the agro-processor or a stock-feed manufacturer to invest in production of at least 40 percent production that they must do of their raw materials…

“There is no justification for any bread or flour price hike because the minister has not issued anything in terms of wheat grain importation.”

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