The Small and Medium Bakery Owners Association (SMBOA) yesterday said unless reducing the prices of raw materials such as yeast, margarine, vegetable oil and related ingredients it is impossible to reduce the price of bread and other bakery products as requested by authorities.
Speaking to Daily News Business SMBOA, President Niruksha Kumara said although the value of US dollar has been showing a significant drop during the last two weeks even a small percentage in prices of these raw materials have not yet been reduced by traders especially in Colombo and suburban markets. He said under such a situation bakery owners, especially small scale bakeries are reluctant to pass the benefit of the dollar depreciation and reduce the prices of their products. He said in addition increasing the electricity tariff from this month and the recent price hike of LP gas have also badly affected bakery product manufacturers.
Speaking about the situation of eggs that are to be imported Kumara said although the price of imported eggs will be sold to bakery owners at Rs. 30 each the price of bread and related bakery products could not be reduced owing to the escalating prices of the said ingredients.
The SMBOA President said what authorities should do at this moment is to reduce the prices of ingredients in the open market as it will help to reduce the prices of bakery products to a certain extent.
He also warned health authorities to check whether the expiry date is clearly marked on imported egg boxes like in all other products manufactured and also imported from foreign countries.
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