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JCTR SAYS RAPIDLY INCREASING FOOD PRICES February 2008 The current upward trends in food prices pose serious challenges to human development and require that strategic planning and responses begin now, says the Jesuit Centre for Theological Reflection in light of its monthly basic need basket research which has shown unprecedented rates of price changes in recent times. The source of these price changes could be attributed to various factors, both internal and external. From the time of independence, most African countries have found it difficult to create “buffers” to safeguard them against external economic shocks, such as global food price increases, crude oil, etc. However, it is also internal shocks such as droughts, floods, etc., that have made external shocks find reinforcement at the national level. The manifestation of these shocks invariably and unfortunately undermines human development through making basic needs unaffordable. Through its monthly research -- designed in a simple but realistic way in that prices are gathered from retail outlets where the majority of the Zambian people go to shop, averages calculated and presented in a format easy to understand -- the JCTR has presented to the Zambian people the monthly Basic Needs Basket to give a picture of current situation of affordability or lack thereof of basic needs for decent human survival. The February 2008 Basic Needs Basket, has shown an unprecedented increase in the cost of basic food. Reported at costing an average of K596,000 in January, the cost of basic food is K654,750 at the end of February. This represents a huge increase of K58,750. Notable increases were recorded in the price of a 25Kg bag of breakfast mealie meal which increased by K4,700 to currently costing an average of K41,000 compared to K36,300 in January. Also the price of a Kg of dry fish increased to an average of K50,200 from K34,400 in January. The price of 2 litres of cooking oil increased by K4,900 from K18,100 to K23,000 and bread -- after periods of relative price stability -- has increased by K300 to currently costing an average of K3,200. Green vegetables, tomatoes and onion also recorded increases. While global upward trends of prices – reported to have increased by 40 percent -- could have an impact at the national level, it must be recognised that there are also seasonal factors to explain the current upward changes in prices. Historically in Zambia, there has been a tendency of upward changes in the price of food items beginning at the last quarter of each year all the way up to the harvest time. The obvious and common underlying factor to explain this scenario is that it has to do with how much is available on the market. But human living conditions cannot be explained only in relation to food needs since there are also non-food needs that have to be met. When the costs of wash and bath soap, housing, electricity, etc., are added to cost of basic food, the total cost of the basic needs basket amounts to K1,870,650. Given current upward trends in prices of food items, the recent recommendations of the Parliamentary Committee on Estimates to have the Tax Exemption Threshold proposed at K600,000 adjusted to K1,000,000 is an apt moral and ethical response to the challenge of human development in Zambia. That the current situation of cost of living is known, the biggest question is how to address such situations in ways that will not just respond to immediate needs but also to long-term needs. “It appears,” says Miniva Chibuye of the JCTR Social Conditions Programme, “what is required are holistic approaches to national development.” This calls for good agricultural practice that incorporates various dimensions. Moreover it implies, for long-term benefits, paying much attention to peoples’ skills development through a sound education system, including ensuring that people lead healthy lives. Certainly the benefits from copper mining cannot be felt significantly in a situation where food prices are going to be rising beyond affordability of many households! |
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