The President of the Kwara Master Bakers, Alh. Abdulfatai Alaba, have said that the association has concluded plans to increase the price of bread by 25 per cent after Ramadan. He noted that the increment became highly necessary due to the hike in the cost of raw materials.
Alh. Alaba said that the new increase of 25% would take effect from next month (June), he said: “The challenges we face as a result of the incessant increase in the prices of baking ingredients has made most Kwara bakeries to go comatose and making those of us in business to operate at a loss.
Alh. Alaba also noted that despite the incessant inflation of prices of flour, sugar and other baking ingredients by threefold in the past three years, there had been no corresponding increase in the price of bread by bakers in the state.
He said: “Between 2016 and 2019, the price of flour had increased from N6,500 to N11,500 per 50kg bag, while sugar had seen 77 per cent rise in price within the same period, with salt, margarine, yeast and preservatives recording 84 per cent, 67 per cent, 112 per cent, 45 per cent and 137 per cent increment, respectively.
He continued: “Also, the price of diesel, which we use to power factory generators on a 24-hour basis, had gone up by 57 per cent, while the price of improvers used in enhancing the quality of bread has risen by 160 per cent during the period under review, conversely, the price of bread had only witnessed 11 per cent rise within the time.
“Most of us obtained loans with double-digit interest rates from financial institutions to fund our business and are finding it extremely difficult to meet our loan repayment obligations,” Alh. Alaba further lamented.
If the proposed increment scales through, a loaf which is sold for N200 will now be N250, that of N100 will be increased to N150. Also a N350 loaf of bread will go for N400, and so on.