Rein in defiant retailers: Consumers

15 Jul, 2022 - 00:07 0 Views
Rein in defiant retailers: Consumers In most districts of Manicaland several products and services are being pegged exclusively in US dollars without the option of paying in local currency

The ManicaPost

 

Post Reporters

 

MOST wholesalers and retailers in Manicaland are pegging prices of most of their goods exclusively in United States dollars despite the fact that defiant operators risk having their licences withdrawn.

 

A check by this publication in most districts of Manicaland showed that several products and services are being pegged exclusively in US dollars without the option of paying in local currency.

 

Local authorities have also joined the fray and are pegging service charges in US dollars or black market rates.

 

Dairiboard’s Steri Milk is pegged at US$7.60 for a case of 12x500ml bottles.

 

However, other products likes maheu, yoghurt, ice cream and lacto are still being charged in local currency.

 

Some retailers are allegedly removing basics from the shelves, thereby creating artificial shortages.

 

Major supermarkets in the Central Business District of Mutaredid not have sugar, buttercup margarine, laundry soap, baby formula and other basic products on Wednesday.

 

However, downtown wholesalers retailers are selling 2kg sugar strictly in hard currency.

 

In OK Mart, brown sugar is being sold strictly at US$16 without an option to use local currency, while customers only have an option to use the local currency when buying white sugar.

 

In Chipinge, a case of brown sugar is being sold at US$18 at N Richards and Metro Peech.

 

Even those trading in the motor spares industry are also demanding US dollars for service kits and other accessories.

 

A motor spares dealer in Mutare, Transerv is now selling some of its oils in US dollars only.

 

A Fleet-line brand oil is now being sold in US dollars only, with staff at Transerv, saying they were waiting for the rate to use from their Harare head office since last week.

 

In some retail shops in Chikanga, they have resorted to frustrating customers by lowering the prices of basic commodities like sugar, cooking oil, soap, salt and maize-meal in US dollars, while pegging exorbitant prices in local currency.

 

Consumers interviewed said they are being forced to source for foreign currency on the parallel market for them to buy products that are now being sold in US dollars now.

 

“I am being paid my salary in the local currency, but I am forced to buy forex on the parallel market so that l can buy basics for my family. We are suffering because the parallel market rates are unstable and change constantly,” said Mr TendaiMashingaidze of Chikanga Phase One.

 

Business in Rusape are also doing the same thing.

 

Most basic goods such as cooking oil, rice and flour in wholesales like N Richards Group are being sold exclusively in US dollars.

 

Hardware shops are also pricing their products in foreign currency.

 

On demand products such as stockfeeds are also being sold in US dollars only.

 

However, retailers like OK and TM Pick and Pay are accepting all forms of payments.

 

In some shops that are accepting local currency, exorbitant and black market rates are being used.

 

Public transporters that link Rusape and various rural areas also charge their fares exclusively in US dollars.

 

Consumers have called upon Government to monitor activities in shops as the majority of people do not have access to foreign currency.

 

Mr NesbertChasara called upon Government to rein in errant retailers and wholesalers as their actions are hurting ordinary people.

 

“Government and business must have a common ground when it comes to pricing policies.

 

‘‘It appears as if there is a tug-of-war between Government and retailers. What is disturbing the most is that we the consumers bear the brunt of this. People do not have foreign currency, but shops are now charging exclusively in US dollars,” said Mr Chasara.

 

Finance and Economic Development Minister, Professor Mthuli Ncube on Tuesday clarified the position and law in terms of pricing.

 

“Some retailers are putting up stickers to say this or that product can only be bought in US dollars. I want to make it clear and categorical that is totally unacceptable. As a Government we will not allow that.

 

“We will withdraw licences, and will withdraw the duty rebate licences for companies that have been doing this. They are breaking the law. The law says the citizens or anyone approaching the shops should offer the currency of their choice. We cannot tolerate this kind of nonsense, absolutely not. They are breaking the law,” said Minister Ncube.

 

Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu said the decision to sell selected goods exclusively in forex is derived from supply chain pressures as most suppliers and manufacturers are demanding payment in US dollars and rejecting local currency.

 

“It is a dilemma as the law stipulates that goods must be offered for sale in all currencies that are legal tender,” he said.

 

 

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