Punjab bread producers may hike loaf price

Consumers may have to shell out more on purchasing loaf as bread makers in Punjab are mulling to raise the commodity price by Re 1 per unit following spiralling rates of its main constituent wheat flour (maida).

"We will have to raise the price of bread by at least Re 1 per unit if the prices of wheat flour do not come down considerably in next one month," said Manjit Singh, managing director, Bonn Nutrients Private Ltd, which manufactures bread under the brand name "Bonn".

Bread makers in organised sector in the state, with a total capacity of churning out 500,000 loaves per day of 400 gm each, have been witnessing a dip in their margins due to consistent rise in wheat flour prices in the last one month, triggered by escalating wheat prices.

The wheat prices have soared to Rs 980 per quintal because of the buying-back by local flour mills and demand from south based traders.

The price of wheat flour (maida), which is a key input for bread producers, have shot up to Rs 1,350 per quintal at present from the level of Rs 1,050 per quintal a month back, recording a jump of Rs 300 per quintal, Singh said.

"It has become unviable for the manufacturers to absorb the rising cost of input, caused by wheat prices in Punjab. Our margins have squeezed which resulted into forcing us to ponder over making a hike in prices of finished product," said Singh.