HARARE, Dec. 5 (Xinhua) -- Zimbabwe on Thursday cut by half the retail price of the staple maize meal after the government reversed its earlier decision to scrap grain subsidies.
In the middle of November, the government announced plans to remove grain subsidies and end import controls on maize and wheat to improve supply after drought and flooding left half of Zimbabwe's population in need of food aid.
The removal of the grain subsidies resulted in millers hiking the price of maize meal beyond the reach of many, from around 55 Zimbabwe dollars to 102 dollars for a 10-kg bag of maize meal.
Last week, President Emmerson Mnangagwa reversed the decision to scrap the grain subsidies, saying the subsidies are essential to protecting vulnerable citizens from rising food prices.
Finance Minister Mthuli Ncube said on Thursday that following the reinstatement of the subsidies, a 10-kg bag of maize meal would now cost 50 dollars.
He said under a new subsidy policy, the government will fund the procurement of grain at market prices and sell them to registered maize millers to ensure availability and affordability of the commodity.
