The prices of bread and biscuits will climb in another few days as the local market re-adjusts to flour prices that had been previously subsidised by the government.
Price increases were initially set to take effect from today with an estimated $30 to be added to the current cost for a sandwich loaf, but this was pushed back to sometime later this week following negotiations.
Bakers across the country met yesterday with the National Milling Company (NAMILCO) and Minister of Commerce, Manniram Prashad to discuss the increases, which are now expected to be lower than the one earlier intended.
In a press release issued yesterday prior to the meeting, the Association of Bakers said they have been forced to raise prices because the cost of flour has reverted to the pre-subsidy levels which are approximately 22% higher than the subsidized price.
“After consultations and considerations including impact on consumers, cost impact to our businesses and the very viability of the industry, we are reluctantly forced to increase the prices”, the release stated.
Naeem Nasir, President and Chief Executive Officer of Nasir and Nasir, Principals of Bakewell and Roti Hut told Stabroek News yesterday after the meeting that government was subsiding the flour price on the local market since May when prices shot up, but the initiative by the administration ended on September 5.
In the absence of the subsidy bakers are now paying an additional $1500 on every bag of flour, which he said, has impacted severely on the industry. Nasir disclosed that there were ongoing discussions between bakers after September 5 and recently, it was decided that they would raise prices.
He said NAMILCO was called in and talks were held prior to the decision being taken to initially announce new prices with effect from yesterday. Nasir said the negotiations yesterday went well, and as a result consumers will only pay a moderate increase.
“What is now required is for bakers to go back and re-calculate before any announcements are made with respect to new bread and biscuit prices. The increases will come later”, he added.
Nasir said that NAMILCO was facilitating, pointing out that the milling company offered a further reduction on the price of its flour allowing bakers to trim the increases they had estimated.
The release from the bakers association had stated that the increase in flour prices is compounded by the hike in the prices for other bread and biscuit ingredients and fuel and freight costs.
But negotiations will continue according to the association which said that it plans to hold further discussions with various raw materials suppliers and “whenever possible pass on to the consumer any reduction, benefit which we have received”.
Over the past few months government made several efforts to cushion the impact of rising flour prices and had initiated measures that included flour being retailed across the country at reduced prices. (Iana Seales)
