Sri Lanka: Bakery owners decide against increasing bread prices

COLOMBO (News 1st); The All-Ceylon Bakery Owners association announced that they would not opt to increase the price of break.

The announcement came after a meeting with the Trade Minister, who had noted that the two main Wheat Flour companies had agreed to provide sufficient stocks.

A shortage of Wheat Flour in the Sri Lankan domestic market resulted in a massive price hike, where a 50 kg pack of Wheat Flour that was Rs. 13,500/- spiked to Rs. 20,000/- in a matter of days.

Over the weekend, the All Ceylon Bakery Owners Association announced that if they purchase Wheat Flour at this rate, the price of a loaf of bread will have to be fixed at around Rs. 300/-.

The All Ceylon Bakery Owners Association met and discussed matters with the Minister of Trade Nalin Fernando on Monday (5). 

Prima Ceylon Private Limited told News First that they have not taken any measures to increase the prices of wheat flour. 

Prima Ceylon Private Limited went on to add that the price hike in the market is could be attributed to the operations of the Wheat Flour Importers based in OPettah.

However, Prima Ceylon Private Limited is producing below capacity due to the Dollar Crisis. 

The Company went on to add that they have been finding it extremely difficult to source dollars despite their ability to purchase raw materials directly from their parent company based in Singapore.

On Monday (5), News 1st visited the Pettah Wholesale Market to inquire into the situation, and it was reported that a shortage of Wheat Flour exists in the local market.

"Prima & 7-Star were the market suppliers. 7-Star Flour was in demand. We unload massive stocks of 7-Star Flour. However, now they released around 25 to 50 sacks. Therefore, there is a shortage,"  one trade told News 1st.

Minister of Trade Nalin Fernando told News First that the main wheat flour companies in Sri Lanka have agreed to release buffer stocks to meet market demand until the stocks that were ordered are imported into the country within a few weeks. 

He further added that the government will support Wheat Flour Importers to source dollars to carry out their activities. 

The minister added that India's decision to stop wheat exports has also attributed to the shortage of Wheat Flour in the local market.