Bread prices to go up soon if…
There are signs that rise in the prices of bread and flour related products in Nigeria are imminent.
The association of master bakers in the South-West zone, who met recently in Oshogbo said the rising cost of ingredients for the production of bread may either force them out of business or cause rise in the prices of products.
Accordingly, the association has called for immediate intervention of the Federal Government in stemming the rising prices of ingredients being used to bake bread.
In his address, the South West leader of the association, Alhaji Abibu Abolusodun attributed the rising cost of ingredients to high import charges, exchange rates and high cost of wheat, miller.
According to him, the cost of major ingredients for baking has witnessed increase between 90 to 120 per cent from January this year till date, thereby making the business of baking not to yield profits again.
Currently, the cost of 50kg wheat flour and sugar, which he emphasised cost N6,500 and N8,000 respectively in January this year, adding that the two ingredients now cost N11,200 and N18,000 respectively.
Abolusodun added that it is not yet in their mind to jerk up prices of product, rather they are appealing to the Federal Government to subsidise cost of wheat flour and sugar as part of interim measures to stem the rising cost of the products and also encourage cultivation of wheat in the country.
He recalled that “Association of master bakers is the second largest employer of labour. They are next to government. The increase in the prices of the various sizes of bread has gotten to the inelastic stage. Bakers can no longer increase prices, yet the costs of all inputs are on the high side.
“Bakers cannot break even at the end of production. Many bakers are now indebted, forcing them to close shop, thereby adding more to the number of unemployed people”, Abolusodun said.