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Manuel has ruled out fixing the price of bread in South Africa
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September 04, 2007, 21:30
Finance minister, Trevor Manuel, has ruled out fixing the price of bread in South Africa. "If we try and cap prices here, we will create all manner of difficulties for ourselves," he told MPs in the National Assembly today.
Manuel was responding to a call from Pan Africanist Congress (PAC), MP Motsoko Pheko, to fix the bread price. Earlier, Pheko said his party was shocked by news bread had increased by 48 cents a loaf.
"The poor in our country... will be hard hit. A loaf of bread must be affordable for every family in our country," said Pheko. Urgent action was needed on this issue, including a government inquiry into the bread industry and the way it was "monopolised".
In June this year, wheat prices had gone up by 10% and the maize price had gone up 50% so far this year. This would have "disastrous implications" for many, Pheko said.
Responding, Manuel said the price of bread was a "very important and sensitive" issue. "Across the world -- as a result of climate change and also general commodity price cycles -- you've seen changes in the price of both wheat and maize.
"In respect of wheat prices there has been a very significant change. Pasta [in] Italy, for instance, has increased by about 30% in the past six weeks. So we're not alone in this, and I think part of it requires a national response," said Pheko.
Manuel said it would be better to start a process within the Food and Agricultural Organisation to look at treating the price of basic inputs such as wheat and maize differently to other commodities. - Sapa
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