…as maize meal prices increase again, now by 15 percent
Hopolang Mokhopi
BASOTHO National Party (BNP) leader, Machesetsa Mofomobe, has filed a motion in parliament calling on the government to subsidise staple foods to cushion consumers from rapid price hikes.
The motion follows the latest 15 percent maize meal price increase by milling company, Lesotho Flour Mills (LFM), the second hike in barely a month.
The increase is effective from Monday next week. The latest hike follows the 7 percent increase effected by LFM on 4 April 2024.
This means consumers will now have to pay at least M110.76 for a 10kg packet of the staple Chai maize meal.
Chai is one of the maize meal products of LFM, alongside Mother’s Delight maize meal.
Apart from maize meal, LFM, the country’s largest milling parastatal, also produces a variety of Letlotlo flours and LSP sugar, among other products.
LFM said in a statement this week it had been forced to hike prices by the surge in the costs of raw maize.
LFM’s chief executive officer, Fourie Du Plessis, said following the initial 7 percent increment, they had hoped the climate would improve and maize prices would drop but the results had been in the opposite, forcing their prices to increase.
“Lesotho Flour Mills issued a press release in April 2024 which stated that raw white maize prices surged by 39 percent within two months from M3 800 per metric ton as of 31 January 2024, to M5 300 as on 31 March 2024,” Mr Du Plessis said.
“This rise was attributed to the adverse effects of the drought caused by low rainfall and hotter than usual weather during the past season.
“We were hopeful at the time that raw white maize prices would stabilise during April following rainfall late in the season. Unfortunately, the rainfall was too late to impact the crop yields and prices surged further up to levels of M5 500 per metric ton during the past week.
“Unfortunately, Lesotho Flour Mills needs to increase maize meal prices accordingly by 15 percent, effective from 6 May 2024.
“We as Lesotho Flour Mills stay committed to buffer the consumers to the impact of high maize prices and we will continue to consider all options available.”
Mr Du Plessis had in April also stated that prices of various agricultural staples were projected to escalate further in the coming months because of the drought ravaging the southern African region.
This has then compelled Mr Mofomobe to petition his counterparts in parliament to salvage the situation.
“That this honourable house resolves to urge the government to urgently intervene with a subsidy of basic staple food (maize meal) in the wake of famine and high cost of living,” Mr Mofomobe wrote.
It is not yet clear when the motion will be tabled in parliament.
