Bakery owners will decide on price increase

by Harischandra Gunaratna

The price of a loaf of bread has been increased by five rupees with effect from midnight Friday, but the All Ceylon Bakery Owners Association said the scale of upward revision is the discretion of bakery owners because there is no price control on the product.

"There is a regulation applicable only to the weight of a loaf of bread, which should be not less than 450 grams and not on the price", N. K. Jayewardena, the president of the Association said yesterday.

This means that bakery owners can decide on the price increase which could vary from one producer to another, he explained. He said the Association has made written representations to the Trade Ministry requesting for tax concessions but it has fallen on deaf ears.

"We asked for a meeting with the Trade Ministry Secretary last week to discuss issues relating to the problems faced by bakery owners and the concessions they seek, but there has still been no response, Jayewardena said.

The fuel hike and the devaluation of the rupee has affected the bakery industry badly as most of the ingredients are imported, he pointed out.

The government doesn’t want to give any concessions to bakery owners, he complained. "There is a ten rupee tax on every kilo of wheat grain. We have sought some relief as this is a burden on the industry".

Jayawardene said there is no option but to push up prices of bakery products as fuel prices coupled with ingredients used in the process have gone up sharply.


It is true that some bakery owners are fleecing consumers by charging exorbitant prices. This is where the government has to intervene, but it is not happening, he noted.

He said there were complaints of poor quality bakery products being sold, but the vast majority of bakers have made an effort to maintain good quality and this is some relief to consumers.

The Association has requested all bakery owners to mix rice flour with wheat flour and now most bakers use 30% rice flour in bread.

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