By Nicholas Bariyo
Special to DOW JONES NEWSWIRES
Zambia's President Michael Sata Monday urged millers to make
corn "affordable" for the local population amid fears that high
prices could spark food riots like those that rocked several
African countries in the past couple of years.
The price of corn, the staple food for the nation's 13 million
people, has nearly doubled in the past couple of months, hitting
around 80 Zambian kwacha ($15) a 25 kilogram bag and sparking
concerns across Africa's top copper-producing nation. Corn prices
are a major driver of the country's inflation, upon which mining
unions peg wage demands.
"President Sata advised the millers to guard against
exploitation of the poor people who they rely upon for their
industry to thrive," George Chellah the presidential spokesman said
in a statement following a closed door meeting between the
president and the millers.
Such sharp hikes aren't justified considering that the country
has had bumper harvests in the past three seasons, Mr. Chellah
said.
Local media quoted Mr. Sata Monday as saying steep corn prices
could trigger riots like they did in the early 1990s that
culminated in the overthrow of President Kenneth Kaunda's
government. Mr. Sata rode to victory in Zambia's 2011 elections on
populist promises such as improving miners' conditions and fighting
poverty.
Zambia's millers' body couldn't be reached for an immediate
comment. An industry official, who declined to be named, attributed
the steep corn prices to higher transportation and energy
costs.
In the past couple of years, steep food prices have triggered
violent riots in countries such as Uganda, Malawi, and Mozambique
and Sudan.
In recent years, the Zambian government has been subsidizing
corn production to stabilize local prices and promote food
security. The state-run Food Reserve Agency usually buys the
commodity at higher prices from farmers and sells it at reduced
prices to millers to make it affordable to buyers.
Last year, the World Bank warned Zambia against the practice
saying that it doesn't ensure long-term and sustainable growth of
the agriculture sector. Government officials say that millers are
exporting cheap corn to neighboring countries instead of supplying
the local market.
Miners unions have been pressing companies such as Vedanta
Resources PLC (VED.LN), Glencore International PLC (GLEN.LN), First
Quantum Minerals Ltd. (FM.T) for higher wages, citing rising
inflation. The country's inflation rate increased to 7.2% in
December from 6.9% in November.
Last year, Zambia's corn output is estimated to have increased
by 6% to reach 2.8 million metric tons.
Write to Nicholas Bariyo at Nicholas.Bariyo@dowjones.com
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