Bakery prices set to rise 20pc from Saturday

Collected Photo

Prices of bakery products across Bangladesh are set to rise by up to 20 per cent from Saturday (September 12) as small bakery owners move to offset soaring costs of flour, cooking oil, gas and electricity.

The Bangladesh Bread, Biscuit and Confectionery Manufacturers Association, which represents hand-operated and small bakeries, has decided to adjust prices from Saturday.

Association president Jalal Uddin said that the group had not formally announced a price hike but had agreed to adjust prices collectively.

In some cases, prices will remain unchanged while the weight of products will be reduced.

“For example, a loaf of bread that costs Tk 10 will remain Tk 10, but its weight could be reduced from 400 grams to 350 or 320 grams,” he added.

The association cited sharp increases in the prices of key raw materials over the past six months as the main reason for the adjustment.

According to Jalal Uddin, flour that previously cost Tk 25-30 per kilogram now costs around Tk 42, while a sack of refined flour has risen from Tk 3,000 to Tk 5,600. The price of a drum of cooking oil has also increased from Tk 25,000 to Tk 36,000.

“On top of that, we are facing problems with gas and electricity and higher operating costs. We are struggling to survive,” he said.

The association said production costs have risen by 20 per cent to 30per cent because of higher raw-material and energy prices. At the same time, unreliable gas and electricity supplies have reduced production by 10per cent to 15per cent.

No bakery has closed so far because of the crisis, Jalal Uddin said, although many have reduced production. A bakery that previously used five sacks of flour a day, for example, is now operating with around three sacks, he said.

According to the association, Bangladesh has around 7,000 small bakeries, including more than 700 in Dhaka.

Bakery industry leaders warned that if the current crisis continues, the sector could come under serious pressure within the next six months.