Zambia has been experiencing escalating price of the major staple food and this has translated into increased price of 25Kg bags of both roller and breakfast mealie meal. Most commentators have argued that the majority of the Zambian households whose income is extremely low cannot afford current prices. To act in public interest, Government through the Food Reserve Agency (FRA) have offloaded cheaper maize stock to millers to ensure that the price of mealie meal is within the reach of most households.

(a) As a Public Finance Economist, kindly provide your argument whether this policy directive from Government is justified. [ 15 Marks]

(b) Other than working with FRA to reduce the price of mealie meal, are there any alternatives which Government would have taken into consideration. Kindly discuss.