The Millers Association of Zambia (MAZ) says the removal of subsidy on fuel has adversely affected the operations of private milling companies.
MAZ President Allan Sakala said millers are spending colossal amounts of income on ferrying raw materials to milling plants and this had resulted in increased costs of production.
Mr. Sakala explained that this is the reason why retail prices cannot stabilize further below the current average of between K58 and K60 per 25 kilogram bag of breakfast
He stressed that the subsidies has largely eaten into the profit margin the millers are barely surviving because the distance between the market and milling plant is vast.
Mr. Sakala stated that following the performance of Food Reserve Agency (FRA) in the just ended crop marketing season, millers did not anticipate any commodity shortages that would account for an increase in the retail price of mealie-meal.