Millers resume production

Maize meal shortages have eased in Zimbabwe following an agreement between millers and the government, residents told IRIN on Monday. Most major millers reportedly resumed production on Thursday following an assurance by the government that it would allow a further 20 percent rise in the retail price of maize meal. Last month the government sanctioned only a 20 percent hike. Millers had demanded 62 percent to offset an 88 percent increase in the cost of maize grain and halted production in protest over price controls. "In an effort to assist the government rectify the problem, we have agreed to resume maize milling today (Thursday) and to bear losses and insufficient margins over a short term by means of a staggering of maize meal prices," the 'Zimbabwe Independent' reported National Foods managing director Ian Kind as saying in a letter to Industry and Commerce Minister Nathan Shamuyarira.