Government of Mozambique to provide subsidy of 200 meticals on each bag of wheat flour

20 September 2010

Maputo, Mozambique, 20 Sept – The Mozambican government plans to provide a subsidy of 200 meticals (US$5.5) on each 50 kilogram bag of wheat flour, under the terms of the measure to mitigate the cost of living, the spokesman for the Council of Ministers said Friday.

Alberto Nkutumula noted that the subsidy would be offered to bakeries and not to milling companies and added that the measure, which immediately came into force, had no deadline set for its duration.

When asked to comment on whether informal bakeries would also have the right to the subsidy, the spokesman for the Council of Minister was peremptory in saying that the subsidy would only be granted to official operators that had a commercial business license.

The rise in the price of bread and other staple products led to the violent confrontations that took place mainly in Maputo and Matola at the beginning of September. (macauhub)