Namib Mills, one of the biggest maize meal producers and owners of the popular Top Score brand, among others, said yesterday it will lower prices by 25 per cent.

This will likely persuade other manufacturers to lower prices as well, sources said yesterday.

The price cut will mean a reduction of about N$11 on a 12,5 kilogramme bag of Top Score, and a N$44 discount of a 50 kg bag.

Cheaper, unsifted maize meal will fall in price by about N$10 for a 10 kg bag and N$50 for a 50 kg bag.

Commentators in civil society welcomed the news.

"It's very good news for the most vulnerable whose staple diet is maize meal," said Razia Essack-Kauaria, Secretary General of the Namibian Red Cross Society.

This was especially true as 34,9 per cent of Namibians live on less than one US dollar a day, and most, if not all such people spend at least 80 per cent of their income on food, she said.

Rainer Ritter, chair of the economics standing committee of the Namibia Chamber of Commerce and Industry, also welcomed the news.

"Maize is a staple food for a lot of poor people in this country," he said.

Although it would have little effect on inflation statistics, which include the prices of many foods, it would have a tangible benefit for the less well-off, said Ritter.

IMPORT BAN

"The price adjustment has become possible as a result of the possibility of purchasing cheaper maize in future," Namib Mills Managing Director Kobus van Graan said yesterday.

Import restrictions are soon to be lifted, allowing the mills to import cheaper maize from South Africa.

The restrictions, which were put in place to support the local maize industry, force millers to buy only Namibian maize until the harvest is used up.

The Namibian farmers must be paid a "guaranteed" price - the one listed in South Africa at the start of the season.

The SA price has, however, come down recently as drought conditions eased and the rand strengthened against the US dollar.

This is not good news for the maize industry.

"The current level of regional maize prices is very negative for producers and creates a situation where less maize will be planted for the next season," said Van Graan.

The current South African Futures Exchange (SAFEX) price is about R900 a ton, which Van Graan said is less than the input costs of some farmers.

Less planting and the possibility of drought may cause prices to rise once again, he said.

"Sight movements in supply and demand can trigger rapid fluctuations in prices," said Van Graan.

Detailed price lists were still being compiled and distributed to the trade, and would be available soon.

The Central Statistics Bureau in the National Planning Commission said recently food prices increased by 6,5 per cent during the 12 months to the end of July.

Local News Headlines Of The Last 48 Hours

•  City Council takes back B1 City plot
•  Jacobs corruption probe not yet finished
•  Roessing pushing for 2030
•  Lawyer issue delays cop's trial
•  N$400m waterfront project to start soon
•  De-mining in Angola speeds up
•  Community service a viable alternative to prison: Minister
•  Gazza, The Dogg to share stage
•  Parastatal confirms financial squeeze
•  No action against cops in elephant case
•  SA police seize truck, impound cigarettes from Nam
•  SA heavyweights on bench for Teek appeal
•  Govt newspaper tender re-advertised
•  Damara chiefs to discuss differences
•  Murdered woman found at Rehoboth
•  Warden in court over fuel
•  Swakop is IT, says television producer
•  New conservancy launched in Caprivi
•  Rape, murder, robbery mark long weekend
•  Enviro magazine on way
•  By-election date announced
•  Insurers 'bleeding the common man'
•  TransNamib in dire straits