Home | News | SOME SHOPS SELLING BREAD ABOVE GAZETTED PRICES

SOME SHOPS SELLING BREAD ABOVE GAZETTED PRICES

08/10/2024 09:00:00 Mthunzi Mdluli

Font size:

MBABANE - A number of shops across the country have been found to be selling bread to customers above the gazetted value.
According to a gazette issued by the Ministry of Commerce, Industry and Trade, a loaf of brown bread weighing 700 grammes (g) retails at E13.69, while a white loaf with the same quantity has to be sold at E15.29. However, some shops have been found by the Eswatini Competition Commission (ESCC) selling 700g of brown bread at E14.50, while a white loaf was being sold at E15.99. In some shops, the price of a brown loaf of bread, weighing 700g retails at E15 and a white loaf is sold at E16. This ‘illegal’ increment of bread, without following the laid down regulations, seemingly hiked the local prices to be closer to those of South Africa and Lesotho.

Cheaper

As such, bread in Eswatini is cheaper than the two countries, as South Africa, despite being the source of raw material for some bakers, the difference between Eswatini’s retail price of a 700g of white bread and that of South Africa is E3.70, while that of brown bread weighing the same amount is E4.31. In South Africa, a loaf of white bread weighing 700g retails at E18.99, while a brown loaf costs on minimum E17.99. On the other hand, in Lesotho, a loaf of white bread is sold at E18.70, while the same sized loaf of brown bread is sold at E15.16.
With the ‘illegal’ increment by some shops, the price of a loaf of brown bread has been hiked with varying amounts ranging from 81 cents and E1.31, while a loaf of white bread is between 70 and 71 cents.

The ESCC reported that it is unlawful for shops to overcharge the prices. ECC is said to be making such discoveries as they continue conducting surprise inspections across the country, which are done in collaboration with the Royal Eswatini Police Service (REPS), Ministry of Commerce, Industry and Trade, Home Affairs and municipalities. ESCC Acting Advocacy Communications Manager Linda Dlamini encouraged consumers to refrain from buying any goods or products that cost above the normal gazetted prices, as the country commemorates Customer Service Week. Dlamini indicated that the shops that were found selling bread at higher prices were handed over to the Ministry of Commerce, Industry and Trade, which is the custodian of the Price Control Order. The Price Control Order guarantees the ministry to issue gazetted prices for bread, subsequent to consultations with all stakeholders and it acts where there are entities found to have deviated from the gazette to charge higher prices.

Charging

“Some shops are charging prices that are not according to the law and most of the retail outlets that we visited during our impromptu inspections, were fined and they paid an admission of guilt,” he said. He then cited insufficient personnel as the challenge of the entity, which makes it hard for them to engage in inspections across all retail outlets. Dlamini said as a result, they decided to capitalise on the usage of media platforms, such as radio and print, to warn the public about the tendency of some shops to charge exorbitant prices. “There is no value addition for bread since the manufacturer delivers the product and the shop owner packs it in the shelves,” he said.

He was then asked what needs to be done to address the issue at hand; as it seemed that some of the shop owners are not complying with the gazetted prices. Dlamini pleaded with the public to never in any day spend their money buying products sold at prices higher than those that are to be legally charged as per the laws of the country. “It does not matter where the delivery has taken place. The price must be the same across the country. Even if the bakery truck delivers the product earlier than expected; the price does not change. We are making an appeal to shop owners to follow what the law stipulates,” he said.

Expensive

Dlamini expressed hope that the public will adhere to their plea by not spending their hard-earned money on expensive products. He said no matter how minimal the difference added by the shop owners is, it has a negative impact on the consumers’ finances or spending. “If a shop owner sells 1 000 units of brown bread at E14.50 instead of the expected price, that means that person is making a profit. The situation is worse in rural areas,” he said. Dlamini said the bread pricing differs, especially with those having in-house bakeries. This publication also conducted further investigations to ascertain whether the shops in both rural and urban areas follow the gazetted bread prices. Calls were made to some consumers in rural areas, where some stated that the price of brown bread is between E15 and E16 and that of white bread between E16 and E18. The prices are said to be high despite the fact that most families eat it as breakfast. Some eat it as their supper.

As part of the things they will be doing this week, Dlamini said they will visit three places to capacitate members of those entities on what to expect during the Customer Service Week. “We appreciate the National Commissioner of Police, Vusi Manoma Masango, for inviting us to come and capacitate police officers on the pricing issues, which will be held today, October 8, 2024. We are also going to visit the Umbutfo Eswatini Defence Force (UEDF) today to have engagements with them. On October 10, we will be at Bhunya, Montigny Investment Groups for the same exercise,” he said.

He pointed out that they are not coming alone to the people, but with the Ombudsman of Financial Services and the Central Bank of Eswatini, FSRA, and Conciliation, Mediation and Arbitration Commission (CMAC), which is like Nkwe of some sort when capacitating the public during the Customer Service Week. He encouraged organisations and companies to also invite them, so that they come and capacitate them. On the other hand, Dlamini pleaded with consumers to have a look at the price of any product they buy and see if it is not above the gazetted price before buying. He encouraged them not to buy those products should they come across such. Reporters from this publication visited a number of shops around the country, where it was ideed confirmed that bread is being sold above the gazetted price.