Government steps in to feed the poor

South Africa's leading consumer watchdog on Monday expressed disappointment that the government had not gone far enough to cushion the poor from rocketing food prices. Last week, with the support of the private sector, the government announced a relief package that would cut the price of a 12.5 kg bag of non-branded maize meal by nearly half. Certain companies had agreed to make 400 mt of maize meal available at R25.99 (US $2.5) a bag, compared to the current price of about R46 (US $4.4). Maize meal is the staple food for most South Africans. But the country's National Consumer Forum (NCF) said the initiative "was more concerned with short-term expediency instead of long-term solutions". "The maize meal that has been offered is expected to last for a period of three months. What happens then? After that, we will be faced with the same problems," Tami Bolani, chairperson of the NCF told IRIN. Agriculture and Land Affairs spokesperson Nana Zenani explained that the targeted relief measures were in response to recent studies "that have indicated that many people are finding it increasingly difficult to feed their families". The latest Household Subsistence Level survey showed that South Africa's poorest have seen the cost of their basic needs rise 17 percent compared with last year. Official consumer inflation is 10.8 percent. "These interventions are aimed at protecting South African citizens against spiralling food prices. The package is part of the government's broader strategy to engage communities in poverty alleviation," Zenani told IRIN. But according to Bolani: "What is needed are far reaching proposals that will address the root cause of the food shortages. The government cannot do this alone. A national forum needs to be put in place that includes consumer groups, trade unions, church organisations and NGOs." The government has, however, announced the establishment of a food monitoring committee, which is expected to monitor food production and the supply chain. "The government will not revert to price controls to address the problem. That is why we have set up the food monitoring committee. It will act as a watchdog to investigate whether there is opportunistic behaviour occurring in the market," Zenani said. The government has said that sharp increases in basic food stuffs was a result of the depreciation of the rand, oil price rises, regional food shortages and lack of competition in the supply chain. While it welcomed the intervention, the country's largest trade union said it would have preferred if the government had considered a "more long term solution to a deepening problem". "Any intervention that goes towards alleviating poverty in this country is a positive thing. However, the government should have introduced a windfall profit tax for retailers. This would ensure that no market speculator can actually reap windfall profits at the time of these food price hikes," Patrick Craven, spokesman for the Congress of South African Trade Unions (COSATU) said. The government also plans urgent legislation to increase social pension and child-care grants. Over the weekend Vice-President Jacob Zuma was quoted as saying that one of the causes of hunger in the country was the inability of people to access government's social grants. If approved by cabinet, pensions are expected to increase from R620 (US $59) a month to R640 (US $61) while child-care grants paid to 2.3 million children aged seven and under would increase from R130 (US $12) a month to 140 (US $13). Only three countries in sub-Saharan Africa - South Africa, Namibia and Botswana - provide social pensions for their elderly citizens. Six countries in Southern Africa face critical food shortages, mainly due to drought.