Bakers apply brakes on bread price hike post Govt. assurance

Friday, 2 July 2021 00:27 - - {{hitsCtrl.values.hits}}

Guarantee of stable wheat flour price prompts ACBOA to defer Rs. 10 hike
CAA files legal action against Serendib Flour Mills for increasing wheat flour prices arbitrarily

By Charumini de Silva

The All Ceylon Bakery Owners Association (ACBOA) has decided to postpone its decision to increase price of bread and other items by Rs. 10 from next week following the Government’s assurance to control wheat flour prices in the market.

The assurance was given to the ACBOA following a discussion held with State Minister of Consumer Prote-ction Lasantha Alagiyawanna and Consumer Affairs Authority (CAA) top officials at the Ministry yesterday.

“There is a maximum retail price for wheat flour and that is now at Rs. 87. We have been informed that of the two main companies only one had increased prices and immediate legal action will be taken on their arbitrary price hike,” the Minister told the Daily FT.

Previously, the ACBOA urged the Government to intervene to revise wheat flour price, cautioning that failure to do so will result in bread and bakery product price increasing by Rs. 10 from next Monday.

However, heeding to the request of the Government, the Association said it will not increase prices, as they too feel Rs. 10 hike on bread is unfair by the consumers given the hardships already faced due to COVID pandemic.

“A price hike in bread and bakery products is inevitable for the survival of the businesses when price of wheat flour has been increased by Rs. 18 per kilogram by one firm. Now that Minister assured of no price increase in wheat flour, we too will not increase the price of bread and other bakery products,” ACBOA President N.K. Jayawardena told the Daily FT.

He said that they too wanted the Government to intervene and control wheat flour prices without passing on the entire burden of the price hike to be borne by the already battered general public.

ACBOA President also said price of wheat flour increased by three folds, as the previous increase in April was increased only by Rs. 6.

Noting that there are two main companies that control the entire flour market in the country, Jayawardena said it was unreasonable for one company to always increase prices arbitrarily.

Minister Alagiyawanna said the CAA has already taken legal action against Serendib Flour Mills Ltd., for increasing wheat flour prices arbitrary.

During the discussion, it was revealed that of the two main flour suppliers in the country, only Serendib Flour Mills had increased wheat flour prices and Prima Ceylon have not done so.