Rural Areas Get First Cheap Maize

Rural areas get first cheap maize Nov 01 2002 20:04 Johannesburg - South Africa rolled out the first supplies of cheap maize to rural communities on Friday as part of a scheme to ease the impact of spiralling food prices on the poor, officials said. Retailer Metro Cash and Carry said it had started selling 12.5 kg bags of subsidised maize to rural distributors in the Eastern Cape, one of the poorest of South Africa's provinces. The plan will provide around 20 000 families with a staple maize meal diet every week for three months at just over half the going market rate, in an effort to shield them from rising food costs. It will be reviewed after Christmas. "More than 100 000 people a week are going to get food out of this," Metro Managing Director Hilton Mer told Reuters by telephone from Lusikisiki in the Eastern Cape, where Metro and the Department of Agriculture unveiled the new maize meal brand. "The project in itself is not designed to feed the nation... but for those that don't have the means this will make a significant contribution." Food prices have soared to their highest levels since the end of apartheid in 1994, prompting the government to arrange the industry-funded plan. Southern Africa's biggest miller Premier Foods, Metro, farming group Agri Corporation and other donors have pledged to provide 1 400 tonnes of maize every month at a recommended price of R25.99 per 12.5kg bag, compared to the normal rate of R43. The new "Yiyo Lena" (This is the one) brand of maize meal will be sold to small village vendors in the hope that the measures will benefit the country's most needy families. Government and industry officials have urged downstream suppliers not to take advantage of the deal by hoarding food or hiking prices beyond recommended levels, but have said they will keep an eye out for abuse of the initiative. The annual rate of increase of food prices in metropolitan areas was 19.1% in September, its fastest rise since October 1994, when it was 21.8%, inflation data on Tuesday showed. South African maize prices have also been driven up by massive demand in foodstarved neighbouring countries, where drought and politics have ruined crops.

Trade union umbrella group, the Congress of South Africa Trade Unions, has said inflation, particularly for food, had placed an intolerable burden upon the poor.