Electricity tariff won’t affect bread prices: ACBOA

The All Ceylon Bakery Owners’ Association (ACBOA) yesterday rejected claims that bread prices would be soon increased in the light of the recent electricity tariff hike.

ACBOA President N.K. Jayawardena said bread prices would not be raised anytime soon and was unlikely to be increased within the next few months either.

He said bread prices would only be raised if the price of a kilo of flour was increased by the Ministry of Co-Operatives and Internal Trade and not in the case of the electricity tariff hike.

“We have not had any discussions on the matter and do not intend to do so in the near future. If such a decision is made we will inform the people,” Mr. Jayawardena said and added that the situation would change in case the price of wheat flour was increased.

The price increase in bread and other bakery products are usually made by the ACBOA which comprise 25 major bakery unions.

In October last year the price of a 450g loaf of bread which was between Rs.55 and Rs.60 was increased by Rs.2 following an increase in the price of wheat flour.

The ACBOA said at the time most bakeries were operating at a loss and that some 2,000 out of some 7,000 bakeries in the country had faced severe losses due to high costs incurred as a result of an increase in wheat flour prices and transport costs. (OJ)

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