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Bakery products, bread prices to increase again

31 Aug 2022

  • Bakery owners blame acute wheat flour shortage, say black mkt mafia selling 50 kg at Rs. 20,000, warn of broad loaf reaching Rs. 330, claim 2,000 bakeries closed
  • Bakery Owners’ Asso. writes to CAA, Trade Minister to regulate wheat flour sale via Sathosa
BY Buwanajee Coralage The acute wheat flour shortage will make an increase in the prices of bakery products including that of a loaf of bread inevitable, said All-Ceylon Bakery Owners’ Association President N.K. Jayawardana. Speaking to The Morning yesterday (30), he said that the black market mafia in the wheat flour industry has caused all bakery owners to buy flour at an inconceivable price which might go up to Rs. 20,000 for 50 kilos (kg) of flour which is usually Rs. 13,500 at wholesale price. “The black market mafia that has risen in the country with the shortage of wheat flour for some time has led bakers to purchase flour at these extreme prices which have, in turn, led to the inevitable surge in the prices of bakery products. If this condition continues, consumers won’t be able to get a loaf of bread for anything less than Rs. 330 or so,” said Jayawardana. Furthermore, he mentioned that the wheat flour monopoly is maintained by two main companies in the country and that their production rates being halved for months this year has caused this scarcity. He also said that the lack of foreign currency in the country has prevented the chances of importing wheat from countries such as India, Türkiye, and Ukraine, with the Russia-Ukraine war also slightly hindering the process. He mentioned how these companies are unable to meet the requirements of the market and how the corporate sector is also unable to import flour from abroad as was the previous practice, due to the lack of foreign currency. He asserted that almost 2,000 bakeries out of 7,500 in the country have been forced to close due to this wheat flour scarcity. He has also forwarded a written request to the Consumer Affairs Authority (CAA) and Minister of Trade, Commerce, and Food Security Nalin Fernando to import and regulate the sale of wheat flour through Lanka Sathosa and to provide this to consumers and bakers at a reasonable price. He mentioned that with proper Government intervention and aid, the price of a loaf of bread can actually be reduced by Rs. 50 which will bring much relief for the general public and he asserted that this has also been conveyed in writing to the Government.


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