Bakery owners hold talks with Trade Minister over price hike concerns

A discussion was held today (26) between the Minister of Trade, Commerce, Food Security and Co-operative Development, Wasantha Samarasinghe, and local bakery manufacturers and bakery owners.

During the meeting, views were exchanged on the challenges faced by the local bakery manufacturers and owners in the context of the ongoing Middle East conflict.

The Ministry said that the All Ceylon Bakery Owners’ Association has taken steps to increase bakery product prices in line with recent fuel price revisions, and that extensive discussions were held with the association regarding the factors contributing to the price increase in the bakery products.

Bakery owners noted that diesel is used in ovens for production, and the rise in fuel prices has directly increased their production costs.

It was also highlighted that companies producing wheat flour, a key ingredient in bakery products, had announced they would not increase prices until the end of the upcoming Sinhala and Tamil New Year.

Referring to this, the Minister questioned whether bakery product prices would be increased again if wheat flour prices were raised in any way after the festive season.

In response, the Bakery Owners’ Association stated that prices would not be increased if wheat flour prices rose by around Rs. 10.

They also requested that current obstacles be removed to encourage the use of butter in bakery products instead of margarine made from palm oil, citing health concerns.

The Minister noted the request and instructed them to submit it in writing for consideration of a possible revision of import duties on butter, as prices of palm oil and butter affect bakery production costs.