Bread prices will drop by Rs.5 if price of flour drops: AIBOA

The price of a loaf of bread would reduce by Rs. 5 if wheat flour companies pass on the Government concession on wheat to us, the All Island Bakery Owners’ Association (AIBOA) said yesterday.

Speaking to the Daily Mirror AIBOA Chairman N.K. Jayawardane said commodity levies for dhal, chickpeas, black gram, sugar and wheat were reduced on November 1 by Prime Minister Mahinda Rajapaksa when he assumed duties as the Finance Minister.

Though the concessions were given, the main two flour companies have not responded by reducing their prices. “We had discussions with the flour companies. They said they cannot reduce the price of flour due to the appreciation of the US Dollar against the Sri Lankan Rupee,” Mr Jayawardane said.

“If the concession of Rs. 3 given by the Government is passed on to consumers, the retail price of a kilo of bread would be reduced by Rs. 4. But the companies had not passed on that concession to us yet.

All bakery products, except bread, were increased by Rs. 5 on July 15 this year because of the fuel and domestic gas price hike.

If the concession of Rs. 3 given by the Government is passed on to consumers, the retail price of a kilo of bread would be reduced by Rs. 4