Bread loaf price set to rise by up to 25%

The hike is unavoidable because wheat atta (flour) has become costlier by up to Rs 3 per kg in the past few months

Bread loaf prices are set to rise by up to 25 per cent countrywide after major manufacturers decided to pass on the higher costs of wheat, sugar, and vegetable oil.

The price of a 400g loaf of bread that cost Rs 20 has been increased by up to Rs 5 in Delhi and Punjab in the past week and hikes will be effected in other parts of the country soon.

"Discussions are on to determine the extent of the price increase. It could go up by Rs 2-5 for every 400g pack," said Sudeep Ahuja, vice-president of the All India Bread Manufacturers' Association (AIBMA).

He said the hike was unavoidable because wheat atta (flour) had become costlier by up to Rs 3 per kg in the past few months.

Wheat atta is the main ingredient in bread and forms 30-35 per cent of its selling price, followed by sugar, vegetable oil, fuel, and labour. The price of sugar has also risen as have labour and transportation costs, bringing down profit margins for bread makers. The AIBMA represents all major bread makers in the country, including Britannia, Modern, Harvest Gold, and English Oven.

Varun Berry, managing director of packaged food at Britannia Industries, said input costs had risen eight per cent.

Britannia is planning to hike prices of its bread by five-six per cent countrywide.

Veena Sharma, joint secretary of Roller Flour Millers Federation of India, said wheat prices were expected to decline by the festive season.

"Wheat prices shot up on a perception that production was low. Things are now cooling off," she said.