Palm oil price up affects bakery industry: Bakery Association

The All Ceylon Bakery Owners’ Association (ACBOA) today said they are faced with a difficult situation to run the bakery industry due to the price increase of a litre of imported palm oil.

ACBOA President N.K. Jayawardene said, in order to run the bakery industry smoothly, the government should take immediate action to reduce the import levy on palm oil.

"Palm oil is an essential need for bakery industry, as it is a key ingredient to make  margarines which in turn being used in bakery industry," he said.

"The price of coconut oil too had gone much higher. Unfortunately, importing coconut oil has also become a trend now. Using coconut oil in bakery industry is much healthier than using palm oil. But owing to the price factor, we can't afford to use coconut oil," he said.

The local price of one litre of palm oil had increased to Rs. 600 form Rs. 200, but 90% of the palm oil is imported, he said.

Jayawardene said a request had been forwarded to Prime Minister to consider giving the industry a favourable concession or to reduce the import levy in view to survive the bakery industry.

If the concessions are not considered,  price hike in the Bakery products would then become inevitable. However, it was not decided as yet, he added. (Chaturanga Samarawickrama)