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Abstract

The high increase in the prices of cereals, meat, and building materials is due to the weakness of stocks, increased exports, and the increase of internal demand. To attenuate the effect of the high increase in the price of cereals, meat and cement, the following measures are necessary: • Import important quantities of maize • Draw down on the national security stock, in consultation with the donors. • Reduce the price of animal feeds through reduction in the price of cotton-seed from the state-run cotton ginning facilities • Reduce slaughter fees • Reduce the cost of transportation through reduction in taxes on fuel and spare parts, and • Reduce the tariff on imports of cement Elements of a medium-term strategy to hold down food prices include: • At the production level, focus on better water management, the organization and training of farmers in improved techniques, and the development of the input markets as first priorities. • At the marketing level, take actions to facilitate domestic trade of cereals within the country, reduce barriers to external trade, and promote a series of actions to develop further cereals and livestock processing within the country. • At the consumption level, promote creation of consumer cooperatives, create a second intervention stock, and promote employment generation.

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