Price of one kilogram of wheat flour has been increased by Rs. 8.50 with effect from midnight today, sources said. The new price of one kilogram of wheat flour will be Rs. 98.50
Main share holders Prima and Serendib Flour Mills both raised their prices owing to severe losses incurred by the companies after fuel prices and electricity prices were increased in February this year.
Serendib Flour Mills CEO Sathak Abdul Kadar said that after prices were increased the exorbitant electricity tariffs and transport charges cost the company a massive loss of Rs 3.2 million each day.
Kadar said the exchange rate which rose dramatically from Rs.112 to Rs.134 by about 20% further cost severe losses. “We were bleeding. We suffered a heavy loss. The price increase was necessary,” he said.
Bread and other baked goods are also expected to shoot up in price due to the wheat flour increase, officials said. (OJ)