Bakeries jack up prices in line with wheat flour hike

Tuesday, 30 November 2021 02:33 - - {{hitsCtrl.values.hits}}

Two main companies increase wheat flour price by Rs. 17.50
Since the removal of the MRP, wheat flour prices soar; historic third price hike in 2 months
Bread, kottu and savouries prices go up again
All Ceylon Bakery Owners’ Association says price hike was for survival
Disgruntled consumers want Consumers Affairs Authority abolished as it’s not serving people

By Charumini de Silva

Amidst flour companies Prima and Serendib increasing prices by Rs. 17.50 yesterday, the All Ceylon Bakery Owners’ Association (ACBOA) said that, in line with the soaring costs of inputs and levies, they too would increase prices.

As per the new price revision, a price of a loaf of will increase by Rs. 10, short eats by Rs. 5, kottu by Rs. 10.

Following the revoking of the Maximum Retail Price (MRP) of wheat flour at the end of September, the companies have increased prices three times – creating history.

“There are only two companies who import grains to make flour, and they claim the sudden price rise is due to the foreign exchange crisis. It is beyond our control and the price hike is just for survival of the thousands engaged in the bakery sector,” ACBOA President N.K. Jayawardane told the Daily FT.

The last wheat flour price increase was by Rs. 8, following Rs. 10 increase a month earlier.

Given the current price revision of wheat flour, Jayawardane said a 450 g loaf of bread should be sold at Rs. 100.

“Our industry is almost on the verge of collapse. A lot of the bakeries have closed down due to the rising costs involved in the business,” he claimed, adding that there is a shortage of wheat flour in the market too.

Jayawardane also said that due to the price hike of bakery items, sales have dropped drastically. “The small bakeries that used to sell between 180-200 loaves of bread are only selling around 80 loaves of bread after the price hike.”

Despite the Consumer Protection State Minister Lasantha Alagiyawanna summoning the two wheat flour companies for discussion, the details were not disclosed.

Meanwhile, consumers have complained that bakeries are now selling short eats at very high prices and that the price hike is over Rs. 5 in most instances.

Disgruntled consumers have also called for the Consumer Affairs Authority (CAA), which runs from public funds, to be shut down as it they charge that it isn’t looking after consumer interests properly.

“Without paying salaries for the Minister and officers in-charge of the CAA they should close it down as it will save a lot of money to bring the essential food items, or could be used differently to reduce the cost of living of many people,” they charged.