KR5 rise in mealie-meal price will distort market operations – Magande

NG’ANDU Magande says the government’s decision to allow a KR5 increase for transport in mealie-meal prices will have a negative effect as it is likely to distort operations of the market.

In an interview, Magande, who is former finance minister, urged the government to explore ways of enhancing crop production.

“It increase in mealie-meal prices distorts the activities of the people and if it is private people, it distorts what they are doing. Even the question of saying because FRA is selling maize at KR60 instead of KR65, already you are distorting the operations of FRA. Once you start distorting the operations of the market, then people divert to something else. They can even find something else to sell. What it does is it actually removes the initiatives from the people that want to do things,” he said.

Magande said the government should allow market forces of demand and supply to determine prices of commodities.