The Zambian government has no immediateplans to follow last week's increase in the producer price of
maize with a hike in the retail price of maize meal, an
official of the ruling party said.
    Last December, a 120 pct increase in the consumer price for
refined maize meal, a Zambian staple, led to food riots in
which at least 15 people died.
    That price increase, which President Kenneth Kaunda later
revoked, followed pressure by the International Monetary Fund
(IMF) to reduce the government's subsidy bill.
    However, if the producer price rise, from 6.10 dlrs to 8.67
dlrs per 90-kg bag, is not accompanied by a retail price
increase, the government will have to spend more on subsidies,
a practice discouraged by the IMF.
    "There is no way out but to raise the subsidy levels of
meal. It (the government) would have to choose between the
demands of the IMF and those of the people," a Ministry of
Agriculture economist said.
 Reuter
