Puneet Nicholas Yadav
The Maharashtra Bakery Producers and Workers Mahasangh’s (MBPWM) announcement that bakery product prices will increase by 20 per cent is a natural reaction to the hike in wheat prices, which are at an all-time high of Rs1,350 per 90 kg.
For the past 10 years, the price of standard 90 kg wheat packs has been Rs900. However, with a rise in wheat prices in domestic market, the Mahasangh’s call for a state-wide price hike, which will come into force from September 21, seemed inevitable.
Kanhaiyalal Gidwani, former Director of the Food Corporation of India, blamed the Centre’s ‘faulty wheat policy’ for the hike.
“The state must increase the minimum support price of wheat to Rs750 per quintal from the current Rs650 per quintal in order to keep pace with domestic demand. Currently, there is a deficit of seven million tonnes of wheat in the buffer stock and this has adversely affected wheat prices,” said Gidwani.
Sugar prices, which have stabalised to an average of Rs20 per kg after an increase earlier this year, are cited as another reason for the MBPWM’s decision. “The state needs to control the open market operations of wheat procurement,” said Gidwani.
M Yakub, vice president of the Mumbai Bakers’ Association, said: “The 20 per cent rise has been called for by the Pune-based Association. However in Mumbai we had already increased the prices with effect from September 1. A further rise in price of wheat would mean that the average cost of buns would rise by 50 paise while the breads may become dearer by Re1 across Mumbai.”
