Fri, 15 Dec 2017 10:50:13 +0000 By Buumba Chimbulu THE Indaba Agricultural Policy Research Institute (IAPRI) has warned that trade restrictions such as an export ban raises smuggling costs and create price instability, thereby punishing the consumer. IAPRI research director, Anthony Chapota, explained that export bans lead to market to price instability as most traders took advantage of the business opportunities where the neighbouring commodities were on demand in other countries. “There is no need to keep grain in the country when there is a surplus. When you introduce trade restrictions such as an export ban, which is the desire to protect consumers, leads to price instability. For instance, in 2016, prices for maize in Kitwe were going at K85 for a 50kg and K175 for the same quantity in Kasumbalesa, “People see business opportunities during trade restrictions and they always find a way of taking advantage of it,” Dr. Chapota said. He was speaking […]
