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AMBCN calls for government intervention
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Says price hike inevitable
The Association of Master Bakers and Caterers of Nigeria (AMBCN) has hinted at an impending 50 percent increase in the prices of bread.
Speaking during an interview with NAN on Friday, Lagos state chapter chairman of AMBCN, Raji Omotunde, said the price hike is inevitable.
He disclosed that the baking and catering businesses are some of the worst hit by the economic downturn occassioned by the coronavirus pandemic.
He noted that baking ingredients have increased due to the pandemic, adding that manufacturers are now running at a loss.
“Prices of all ingredients used for baking are too high, especially flour and sugar. Between March and September, there has been a monthly addition of N500 on a bag of flour and bakers have been bearing the additional cost,” he said.
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“But as it is, baking bread and selling at the current price is no longer profitable. We have been appealing to the millers but they are groaning about the absence and increase in price of foreign exchange. The only option we have now is to cry out so that government can come to our rescue.”
Nura Musa, the public relations officer of AMBCN Abuja chapter, called for government intervention.
He said an increase in prices will affect sales which will consequently affect bakery jobs across the country.
Musa said government support is needed to reduce production costs, which according to him, is killing the bakery business.
“The instability of foreign exchange, high cost of diesel and other baking materials are reasons given by flour millers for the hike in the prices of baking materials,” he said.
“We have appealed to flour millers and other people involved in the selling of baking materials to reduce their prices but they have not responded.
“And that is why we are pleading with Federal Government to intervene in this matter by engaging the flour millers and baking material sellers.
“The association is one of the largest employers of labour in the country and if any bakery should fold up many people will lose their jobs.”
A bag of flour which sold at N10,500 before the outbreak of coronavirus, now sells at N13, 000.
Also, a bag of sugar now sells between N19, 000 and N20,000 depending on bargaining power against the pre-COVID-19 price of N14,000.
The alert on the possible increase of the cost of bread is coming at a time when there is outrage over hike in pump price of petrol and new electricity tariff.
What other stakeholders are saying
Some stakeholder in the catering and baking business who spoke with EkoHotBlog also expressed their concern and reservations over the new development.
Olateju Adeyemi, who own a bakery in Agege, a sprawling suburb in Lagos, lamented the devastating impact of the pandemic on his business. He said he does not even break even in the business let alone make profit.
He disclosed that he is already contemplating taking a break from the business until things return to normal because he’s incurred debt.
Another bread maker in Ogba Aguda area of Lagos said increasing the prices of bread again might affect the business as people are already grumbling about the current price. He said government intervention at this point in time will be highly appreciated because bread is a staple food.
A woman, who sells bread in Ifako Ijaye, said the development is already taking a toll on her finances as she’s not worked for couple days because bakeries down tools.
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