The inaction of the Ministry of Commerce is forcing bakers to take the lead. With the too long wait and too heavy losses, five bakeries decided to temporarily close their doors on Wednesday 27 April. This follows the increase in fuel prices and the rising production costs.
The Ministry of Commerce is still studying the proposals of the Bakery Owners Association but there is no deadline for the long-awaited increase. The bakers complain that they can no longer work at a loss and that they are no longer able to obtain new flour stocks. “At present, a 25-kilo bag costs Rs155.50, not including transport costs. The delivery could not continue if this continues, as it has a big impact on the costs. There is also the freight on raw materials,” said Naseer Moraby, President of the Association.
Five bakeries have decided that they cannot continue. They are 3 in Vacoas, 1 in Curepipe and 1 in Bel Air. Naseer Moraby tells us that “other bakeries are determined to follow in the footsteps of these five bakeries. The Association is trying to dissuade them from penalizing the consumers. Next week will be marked by the start of the school year. But they are in the red, including me.” He also makes it clear that “in our calculations, we have only considered the December 2021 increase and not the two increases in 2022. We are only asking for an increase of Rs 1.50 on 100 grams of bread, which is the Scheduled Breads. Input prices have also gone up. There is a specific but essential brand of yeast, which is currently costing more than Rs 2000 instead of Rs 1650“. The Bakery Owners Association is being patient. “We will wait a little longer but the Association cannot guarantee for all the bakeries. We are all annoyed by the crazy time the government is taking. Are they going to drag this out until the next budget? How many bakeries will close until then?”
The home-made bread and baguette are the only breads that are regulated and sold at a fixed price to be respected by all bakeries. But breads qualified as ‘De Luxe’ depend on the manufacturer. This concerns sliced bread, old-fashioned bread and its various versions, multigrain breads…
