30 November 2021 12:59 am
By Shabiya Ali Ahlam
The price hike announced yesterday by the wheat flour companies will not have an impact on confectionery products, at least for the time being, the Lanka Confectionery Manufacturers Association (LCMA) said. The LCMA shared that the price increase announced yesterday is not relevant for confectionary manufacturers, as it is not for the range of wheat flour used by the industry.
Prima Ceylon (Ltd) and Serendib Flour Mills (Ltd) yesterday announced that the price per kilogram of wheat flour would be increased by Rs.17.50. The price increase was effective from November 27. Following the hike, the All Ceylon Bakery Owners’ Association (ACBOA) announced that an increase in the price of bread and short eats would follow.
The ACBOA said that with immediate effect (November 29), the price of a 450g bread loaf would increase by Rs.10 and the prices of short eats would increase by Rs.5 to Rs.10. In recent months, the confectionery industry witnessed a price increase across different grades of imported wheat flour procured. According to LCMA Chairman S.M.D. Suriyakumara, with the price increase announced for all-purpose flour, the price paid by confectioners and bakeries for flour is almost equal. “With the fresh announcement, the price paid by the two industries are equal.
Earlier there was a gap. However, we are not affected by the increase this time round since it is not for us. Our hike came in already before,” Suriyakumara told Mirror Business. While the confectionary industry has not come under pressure, due to the price increase, it still continues to struggle due to a short supply of wheat flour, hampering production.
Although a new price increase has not been announced for the flour grades used by confectioners, the industry foresees a hike by the end of December, due to the short supply.The short supply is attributed to the challenges in importing into the country, due to the lack of the required US dollars.
Global export prices of wheat soared in the recent weeks, due to supply concerns and strong demand from consumer countries. The surge in wheat prices has resulted in bread prices across the world to increase and according to agricultural reports from wheat-producing markets, there will be no relief anytime soon. The shortage in the crop is due to source markets having witnessed droughts, frost and heavy rains this year.