Zimbabwe changes grain policy

The wheat market in Zimbabwe is undergoing radical changes. To promote self-sufficiency in wheat supply and reduce the country's dependence on imports, the government liberalized its heavily regulated market. Greater involvement by both the state and private enterprises is part of the reason that significantly more local wheat has found its way to market in recent years. Bread plays a central role in the menu of Zimbabwean consumers. Much of the processed wheat originates in the US, Canada and Europe. But in the past, the high rate of inflation and constant currency crises in the country often led to shortages of foreign currency, which in turn interrupted imports and caused food prices to rise. To address supply problems and reduce dependence on imports, the government introduced a number of measures to encourage local wheat cultivation. The main element of the reforms is the liberalization of the raw materials market. For a long time the growing and trading of wheat was solely ...