Non-brand bakers have decided to increase prices of their products including bread, biscuit, cake, chanachur, toast, cookies, bun and ruti by 20 per cent from today.

Bangladesh Bread Biscuit-O-Confectionery Prastutkarak Samity took the decision on Monday as the prices of ingredients had increased.
Nagad

Md Rezaul Haqu, General Secretary of Bangladesh Bread Biscuit-O-Confectionery Prastutkarak Samity, said the bakery industry struggling to recover from TK12, 000 crore pandemic-induced losses is now facing another uphill task for survival.

Over the last one year, prices of bakery ingredients have risen up to 300 per cent, labour cost up to 30 per cent and utility bill up to 10 per cent resulting in double production cost.

“So, we have decided to increase prices of bakery items by at least 20 per cent to be effective from Wednesday (today).”

Low-income people and school going people‍ mostly suffer when prices of non-brand bakery products go up. Many of them take their breakfast with a bun or one or two slices of cake.

Yesterday at retail shops in the capitals Mailbag and Gupibag biscuits and chanachur were selling at Tk180-220 per kg. Medium-sized bread was selling at Tk40-60 apiece.

A salesman at the Cumilla Confessionary Store at Gupibag said: “Before January the retail price of biscuits and chanachur was Tk140-Tk180 a kg. As the prices have gone up we are now selling them at Tk180-Tk220.”

As for other products the prices have increased too at the same rate. Prices of all bakery items are increasing. The price of bread has already increased by Tk10-15 apiece. This trend of price hike is hampering the retail sales. “Our sales are dropping day by day,” he said.

According to Bangladesh Bread Biscuit-O-Confectionery Prastutkarak Samity data, more than 50 bakery items are on sale. But the Samity fixed the prices of some selective items.

In January, the Samity reviewed the prices of various bakery products and fixed the minimum price of biscuits at Tk130 per kg, bread at Tk100 per kg, toast at Tk120 and cake at Tk60 per pound and chanachur at Tk140 per kg.

The prices were fixed for the producer level not for the retail and wholesale level.

Supply crisis
Bakery item supply crisis was very much visible at retail markets in the capital yesterday.

Shopkeepers said delivery vans of bakery products were not coming from the previous day leading to crisis of bakery items in the capital.

Talking to The Financial Post, industry insiders said they were at loggerheads with product suppliers on commission.

They are demanding an increase in their commission and as their demand wasn’t met they went on a strike.