Bakery items get costlier by up to 20pc

The price hike took effect from Saturday (September 12) with manufacturers citing higher prices of key raw materials, including sugar, flour and edible oil, as well as gas and electricity shortages that have pushed up production costs.

The Bread, Biscuit and Confectionery Manufacturers Association announced the price adjustment on September 9. Bakery operators reportedly kept their factories closed for two days to prepare for the new pricing before resuming production and distribution at higher rates on Saturday.

Under the new prices, a two-pound loaf previously sold for Tk 100 now costs Tk 120, while the price of a one-pound loaf has risen from Tk 50 to Tk 60.

Prices of other bakery products have also increased. Some items commonly sold for Tk 10 at tea stalls are now priced at Tk 15.

Association President Jalal Uddin said that prices of all major bakery products, including bread, biscuits, cakes and butter buns, have been adjusted. In some cases, prices have been raised directly, while the weight of some products has been reduced to offset higher production costs.

“Production costs have increased excessively, forcing our members to collectively adjust prices.''

He also pointed to the ongoing gas and electricity shortages, saying bakeries are unable to operate normally. While many bakeries previously began production before dawn, some factories now have to remain closed for a significant part of the day due to utility shortages, putting smaller businesses under particular strain.

However, consumers have questioned the justification for such a sharp increase in the prices of relatively low-cost food items that are part of many households’ daily diets.

With wages and household incomes largely unchanged, consumers say they are already struggling with rising prices of essential commodities. The latest increase in bakery prices is expected to add further pressure on family budgets.

Retailers and tea-stall owners in Dhaka and elsewhere have also reported weaker sales since the new prices came into effect. Some products that previously sold out by midday are now remaining unsold until the end of the day, while many customers are buying smaller quantities or walking away after hearing the new prices.

The price hike has not been uniformly implemented, however.

Some bakeries are following the association’s new rates, while others continue to sell products at their previous prices. As a result, prices for similar bakery products vary from one area to another, creating confusion among consumers.

While manufacturers say the adjustment is necessary to cope with soaring production costs, the immediate impact is being felt by consumers. For low-income families in particular, the increase from Tk 100 to Tk 120 for a loaf of bread and from Tk 10 to Tk 15 for some bakery items means higher daily food expenses.

The latest hike has therefore added another layer of pressure on consumers already grappling with persistently high prices of essential goods.