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Importers hoarding tax free cereals?
2006-05-20 09:23:35
By Ludger Kasumuni and Pascal Shao
Cereal importers are feared to be hoarding a huge haul of rice and maize imported under the government’s duty free incentive, occasioning artificial shortage, and the subsequent hike in food prices all over the country, The Guardian can authoritatively report.
So far, the stock of cereals imported under a government strategy to protect the nation against adverse impact of acute food shortage early this year, has not reached the retail network in many areas including Dar es Salaam.
Consumers are digging deeper into their pockets and many have urged the government to intervene before the situation deteriorates further.
A survey by this paper yesterday established that markets are yet to receive the consignment of imported cereals, a fact that pushed food prices high.
Confusion is rife as to where the large consignment of cereals imported during the three months of tax exemption is holed up.
Consumers suspect there might be a cartel-like network benefiting from the sky-rocketing food prices.
A kilogram of rice is now going for 1,200/- against a projected 300/- per kg for the imported stock. A kilogram of maize flour is selling at 750/- .
However, businessmen argue that the three-month tax waiver was not sufficient to allow importation that would stabilize the market.
Communications officer at the Ministry of Agriculture and Food Security, Richard Kasuga said a total of 134,575.8 metric tonnes of maize and 27,388 metric tonnes of rice were imported within the mentioned period of time.
Kasuga said records indicate that at the time of importation, the country needed 99,676 metric tonnes of grain to off-set the shortage.
He insisted that tax exemption period of three months granted to grain importers on January 23 this year, ending April 23 was sufficient to alleviate food shortage.
The total demand for grain in the county, is put at 9.5 million metric tonnes annually.
When contacted for comment, the Secretary of Tandale Market Grain Sellers Association (TAMAGRASAI), Abdul Kambaya, was of the view that the tax exemption granted to importers was a non-starter and the nation did not benefit.
’’We think that grain importers cashed in on the tax exemption. The prices of grain have been on the rise,’’Kambaya said.
He added: ’’The government has lost revenue for nothing. It could have been spent on other commitments like purchasing medicine and construction of roads and schools’’
Deputy Chairman of TAMAGRASAI Ali Uledi concurred with Kambaya saying the situation was appalling as no consignment of grain was received at Tandale.
Uledi said while last year a kilogram of maize was selling for between 80/-and 106/-, this year, the price had tripled to 308/- a kg at wholesale outlets.
The prices of imported rice last year was 285/-per kg but this year the same amount is selling at between 900/- and 1,000/-.
Meanwhile, an angry mwananchi, who called The Guardian, requested the government to intervene in the fuel and food price ’crisis,’ saying most people were suffering now than ever.
’’We have read in the press that the government cannot do anything even as fuel prices are now rising like never before,’’ said the caller, who preferred anonymity, in a telephone interview.
He said the prices were taking a heavy toll on low-income earners, most of whom depend on monthly salaries of not more than 50,000/-.
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