• Owners agree to sell products at a price they feel comfortable and based on demand and supply
• Business will continue similar to Manning market operations, where prices differ daily
• Pandemic has shut 3,000 of over 7,000 bakeries

By Charumini de Silva

Unable to further get crushed between the ever-increasing cost of essential commodities and to keep the businesses afloat, the All Ceylon Bakery Owners’ Association (ACBOA) have decided not to stipulate a standard price for their products from last night.

“We cannot increase the prices of bakery items every time the cost of essential commodities are revised upwards. It has now become an everyday situation. There is no Maximum Retail Price (MRP) or a controlled price for bakery items. Hence, we decided to let our members sell their bakery products at a reasonable price they determine on with no specific price tag,” ACBOA President N.K. Jayawardane told the Daily FT.

He said already around 3,000 bakeries have been closed from the total of over 7,000 bakeries at present due to the hardships they had to face in the post-pandemic situation. Last Friday, he said over 50% of its members that were still surviving have also closed bakeries around the country due to the unavailability of Liquefied Petroleum Gas (LPG). 

“There is some price increase everyday now affecting our businesses, whilst also adding on to the already skyrocketed cost-of-living. We cannot come out and announce price hikes every day and become a laughingstock. Thus, we told members to continue with their business similar to a model of Pettah Manning market which operates on daily prices, as we have now run out of options. We do not know any better way to tell our members how they could survive under these dire economic conditions,” Jayawardane said.

Pointing out that the rising cost of vegetables, poultry, sugar, flour, cooking oil, gas, transport cost followed by the fuel prices from Monday is unimaginable, he stated that was another key reason for the closure of most bakeries.

“In addition to our weekly expenses on essential items, we also have to pay salaries for our workers, electricity, water, rents, leased vehicles and bank loans. Those remaining in the industry today are running at cost as they have no other choice to look after their families. No authority is extending any concession to our industry,” he stressed.

He said the closure of business would impact over 500,000 people engaged directly and indirectly in the bakery industry.

“At a time when people are reeling from the cost of living and battered by the impacts of COVID pandemic, every increase in the additional budget of a household becomes intolerable. We also belong there,” Jayawardane said. 

 

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