Africa-Press – Eswatini. Government has approved the increase in the price of bread by 20.76 per cent for both white and brown bread with effect from tomorrow.
This means that for an 800 grams loaf of brown bread, consumers will now have to pay E14. 58 and for white bread, they will have to pay E16.73.
This shows an increase of E2.51 for brown bread and E2.88 for white bread.
A loaf of brown currently costs E12. 07 while white bread costs E13.85.
The increase comes barely after four months from the last hike, which was effected in March.
The price increase was announced by Minister for Commerce, Industry and Trade, Manqoba Khumalo, yesterday.
“The ministry of commerce, industry and trade wishes to announce that Cabinet has approved the increase of both brown and white bread prices by 20.76 per cent with effect from 13 July 2022,” read the statement in part.
According to Khumalo, the increase had been brought about by the prevailing economic conditions that have prompted an upward shift in the prices of raw materials used in bread production. The minister said the major producers of wheat had taken a decision not to export their produce, thus making wheat a scarce and costly commodity globally.
“The increase is envisaged at keeping the bread industry at sustainable profitability levels,” said Khumalo.
Meanwhile, in March government approved the increase of prices for both brown and white bread by six per cent.
At the time, the minister said the increase had been necessitated by the escalating prices of raw materials such as wheat, flour and premix, among other ingredients used in bread production.
He stated that fuel hikes also had an adverse effect in the profitability of the industry.
The announcement revoked Legal Notice No. 256 of 2020 as articulated in the issuance of the Maximum Wholesale and Retail Prices of Bread Notice, 2022.
The hike of bread has been necessitated by the escalating costs of production for bakers.
The cost of raw material has been in upward pricing since the invasion of Ukraine by Russia.
The two countries are the largest suppliers of wheat, which is the main ingredient in the production of bread.
As a result, there has been a large threat to the bakers industry given the ongoing war between Russia and Ukraine.
This is because since the war started, the prices of wheat, which is the core ingredient in the recipe for bread, have surged by 40 per cent.
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