EghtesadOnline: Arise in the retail prices of bread has been okayed but the rate of increase has not been announced yet, Bijan Norouz Moqaddam, the head of Tehran Bakers Union, says.
“Mounting costs have prompted some bakers to increase bread prices by 50% to 100%. They could no longer wait for the official announcement. There have been complaints about price rises and the shrinking size of bread. We can’t sell bread at the same prices of two years ago when expenses, including workers’ salaries and fuel costs, have increased,” he added.
The last official changes in bread prices were implemented on Oct. 6, 2019, Eslam Habibi, the head of Varamin Bakers Union, told the Persian daily Etemad.
“Over the past two years, operating costs have soared. Flour is not the only ingredient when it comes to baking bread. Baking yeast prices have risen, alongside workers’ insurance premiums and wages,” he said.
“Bread prices should have increased four months ago. Many bakers in Varamin, Qarchak and Pishva have yet to increase bread prices, but bakers in Tehran have raised prices. We initially proposed a 75% rise in prices, but the 50% increase seemingly introduced in Tehran is not enough for us to cover our expenses.”
Noting that flour is being supplied to bakers without difficulty, Habibi said the share of flour in the end price of bread is not more than 30%.
“Transportation costs, for instance, have increased by 100% last year and rumors are that they will rise by 150% this year,” he said.
“Unless the government fails to liberalize bread prices, consumers will buy the food staple at different prices and qualities. It is more appropriate for the government to pay bread subsidies directly to the people.”