9 September 2010 04:22 pm
The price of a loaf of bread is expected to increase by Rs 3 tomorrow, due to slashed subsidies as international wheat flour prices increase, the All Ceylon Bakery Owners' Chairman N.K. Jayawardena said.
“As the discount of Rs.225 given to the bakery owners for 50Kg of wheat flour was cut off by Rs.150, the price of 1 Kg of flour was increased by three rupees”, Jayawardena explained.
The subsidy was cut down as the price of wheat flour in the international market increased. Along with this price increase, the prices of other bakery products too will increase, he said.
The new price of a loaf of bread will be between Rs.41 to Rs.45. “There is drop about 50 percent of bread sales. We have to sell the bread through intermediaries”, he added.
“As cost of production has increased, the Association’s Executive Committee will decide tomorrow about the price hike. But definitely a price hike can be expected”, Mr. Jayawardena said.
Speaking to Daily Mirror the Director General of the Consumer Affairs Authority Mrs. Chandrika Tillkaratne said that they have not been informed of a price hike.