The prices of bread and flour-based products went up from midnight yesterday, after the government decided to withdraw a rebate provided to flour-importers, bakery owners and hoteliers said.
The price of bread went up by Rs. 1 after the flour prices moved up by a minimum of Rs 3 a kilogram following the withdrawal of the rebate.
Consumer Affairs Minister Bandula Gunwardena said there was no price control of flour and bread and, therefore, the government had no authority over the prices.
All Island Bakery Owners Association President N.K. Jayawardena said that Prima, the main flour supplier, had increased its prices by Rs. 3 and therefore the bakers had decided to increase the prices of their products.
He said the bakery owners were only adding Rs. 1 to the price of a loaf of bread though the actual price increase should be Rs. 1.50 because they now incurred other expenditure such as the Nation Building Tax.
Mr. Jayawardena said that they were compelled to increase the prices of other flour-based products.
The latest price increase in flour and bread comes 18 months after the price of bread shot up to Rs. 38.
Meanwhile, hotel owners said last night they were increasing prices of string hoppers, hoppers, kottu and other flour-based products in view of the latest flour price increase and the rising production costs due to the recent increases in fuel, electricity and water tariffs, salaries of employees.
Milk owners told to reduce price
The Government has issued a directive to reduce imported milk food prices. Accordingly the price of a one kilogram imported milk powder packet must be reduced by Rs. 37 and 400g pack by Rs. 15.
Minister Bandula Gunawardena said that failure to reduce prices will compel the government to introduce its own products to the market. |
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