Olympic Milling in Mufulira District has denounced reports that the recent hike in mealie meal prices was as a result of the increase of the minimum wage.
Company Finance Director David Mulindwa told Labour Minister Fackson Shamenda, who visited the firm today that the increase came as a result of the need to meet the costs spent on maize bought from a private source.
ZANIS reports that Mr. Mulindwa explained that the company had early this year entered into a contract with government through the Food Reserve Agency (FRA) involving 40,000 metric tonnes of maize at 140 dollars per tonne but has only been supplied with 10,000 metric tonnes.
He added that the company had only remained with 2,000 metric tonnes which could not sustain the operations of the company for a month.
This prompted the company to source for close to 5,000 metric tonnes of maize elsewhere in order to cushion the deficit
Mr. Mulindwa explained that the 5,000 metric tonnes was sourced at 250 dollars per tonne to allow the company continue with its operations.
The Director however assured the Minister that the company is ready to reduce mealie meal prices once FRA supplies the remaining 30,000 metric tonnes of maize.
Earlier, Labour Minister Fackson Shamenda emphasised on the need for the company to maintain industrial harmony so as to improve its production capacity.
Mr. Shamenda said government is committed to ensuring that good industrial relations are promoted by all companies as this will enhance productivity thereby contributing to the country’s economic development.
Last week, millers in the Copperbelt province hiked mealie meal prices by between K4,000 and K7,000 depending on the brand.