Bakers continue to fleece consumers
Jasim Uddin Haroon | Monday, 2 March 2009
Confectionary items, including breads and biscuits, are still costlier despite a substantial decline in the prices of wheat, flour and sugar in the domestic market.
The bakers have recently reduced the prices of their produce by only 10 per cent although they had increased the same more than 33 per cent nearly a year ago on the plea of soaring prices of major ingredients.
But some retailers are still charging the previous prices.
The Ministry of Commerce will sit with representatives of two bakers' organisations- the Bangladesh Auto Biscuit and Bread Manufacturers Association and the Bangladesh Bread Biscuit-O-Confectionary Prostutkarak Samity-today (Monday) to discuss different issues.
Mosharraf Hossain, Vice President of Bangladesh Bread Biscuit-O-Confectionary Prostutkarak Samity, defending their price tags said "The prices of bread are high as the prices of flour which we use for producing the same are still high in the local market."
However, Abdur Razzak, a leading flour trader at the city's Moulvibazar market dismissed Hossain's claim saying that the prices of flour which the leading bakers use had also declined.
He said the flour used by several leading bakers has declined to Tk 29 against the previous record price of Tk 39 per kilogram (kg).
He also said the ordinary flour, which is procured by restaurants and automatic biscuit manufacturers, is now selling at Tk 19 against its previous price of Tk 33 per kg.
But Mosharraf claimed that flour was still being sold at Tk 38 per kg.
However, some bakers have tried to pass the blame on to the retailers. They claimed that the retailers were reluctant to reduce the prices of some bakery goods for the sake of earning undue profit.
Md Shafiqur Rahman Bhuiyan, President of Bangladesh Auto Biscuit and Bread Manufacturers Association, told the FE: "We have reduced the prices of biscuits by around 10 per cent. But the retailers have been charging the previous prices."
Mr Shafique, also the Managing Director of Milton Bakery, claimed that these unscrupulous traders were not members of their organisation.
Importers said wheat price in the international market has plunged to $180 a tonne from a record price of US$ 500 in the middle part of last year.
However, the price of the finer quality wheat, which is imported from Australia and Canada, is around $ 280 a tonne against its previous price of around $ 1,000 per tonne.
But the prices of confectionery items like biscuits --- both salted and non salted --- and bread have been reduced by Tk 10 to Tk 20 per kg.
The confectionary owners increased the price of their items in April in 2008 when the wheat price reached all time high in the local market.
Top bakeries like Olympia, Mamtaz, Haq, Orient and Capital are still selling a 400 gram loaf at Tk 28. It was Tk 32 three weeks back, while it was Tk 24 before April in 2008.
Some market operators are of the opinion that a big gap in the demand for and, supply of, products in the estimated Tk. 25 billion bakery market is also responsible for prices remaining high.
The demand gap also has led to increased import of biscuits from India, Malaysia, Indonesia and other Asian countries.
Abdur Razzak, President of Moulvibazar Wholesale Traders Association rejected the baker's argument, saying the prices of quality flour had also come down significantly in recent months.
The bakers have recently reduced the prices of their produce by only 10 per cent although they had increased the same more than 33 per cent nearly a year ago on the plea of soaring prices of major ingredients.
But some retailers are still charging the previous prices.
The Ministry of Commerce will sit with representatives of two bakers' organisations- the Bangladesh Auto Biscuit and Bread Manufacturers Association and the Bangladesh Bread Biscuit-O-Confectionary Prostutkarak Samity-today (Monday) to discuss different issues.
Mosharraf Hossain, Vice President of Bangladesh Bread Biscuit-O-Confectionary Prostutkarak Samity, defending their price tags said "The prices of bread are high as the prices of flour which we use for producing the same are still high in the local market."
However, Abdur Razzak, a leading flour trader at the city's Moulvibazar market dismissed Hossain's claim saying that the prices of flour which the leading bakers use had also declined.
He said the flour used by several leading bakers has declined to Tk 29 against the previous record price of Tk 39 per kilogram (kg).
He also said the ordinary flour, which is procured by restaurants and automatic biscuit manufacturers, is now selling at Tk 19 against its previous price of Tk 33 per kg.
But Mosharraf claimed that flour was still being sold at Tk 38 per kg.
However, some bakers have tried to pass the blame on to the retailers. They claimed that the retailers were reluctant to reduce the prices of some bakery goods for the sake of earning undue profit.
Md Shafiqur Rahman Bhuiyan, President of Bangladesh Auto Biscuit and Bread Manufacturers Association, told the FE: "We have reduced the prices of biscuits by around 10 per cent. But the retailers have been charging the previous prices."
Mr Shafique, also the Managing Director of Milton Bakery, claimed that these unscrupulous traders were not members of their organisation.
Importers said wheat price in the international market has plunged to $180 a tonne from a record price of US$ 500 in the middle part of last year.
However, the price of the finer quality wheat, which is imported from Australia and Canada, is around $ 280 a tonne against its previous price of around $ 1,000 per tonne.
But the prices of confectionery items like biscuits --- both salted and non salted --- and bread have been reduced by Tk 10 to Tk 20 per kg.
The confectionary owners increased the price of their items in April in 2008 when the wheat price reached all time high in the local market.
Top bakeries like Olympia, Mamtaz, Haq, Orient and Capital are still selling a 400 gram loaf at Tk 28. It was Tk 32 three weeks back, while it was Tk 24 before April in 2008.
Some market operators are of the opinion that a big gap in the demand for and, supply of, products in the estimated Tk. 25 billion bakery market is also responsible for prices remaining high.
The demand gap also has led to increased import of biscuits from India, Malaysia, Indonesia and other Asian countries.
Abdur Razzak, President of Moulvibazar Wholesale Traders Association rejected the baker's argument, saying the prices of quality flour had also come down significantly in recent months.