After Milk and Fuel, Bread Prices Jump by Rs 5 Per Packet, Adding to Inflation Woes

New Delhi: After petrol, diesel and milk, now the bread has also become costlier. The bread makers have increased the price by up to Rs 5 per packet, though these rates have increased in Mumbai. The main reason behind this increase is said to be the rising input costs of imported raw materials used for plastic packaging and transportation.

What is the reason of price increase?

According to media reports, the rupee's steadily falling value is further exacerbating import difficulties. On May 16, Modern Bread raised the price of its basic variant by a full Rs 5 per packet, the highest level ever.

How much did the price of bread increase?

A person, who runs a milk-bread stall in Lane 3 of Lokhandwala Complex in Andheri, said that, "The price of 400 grams of Modern sandwich bread has increased from Rs 40 to Rs 45, whole wheat bread from Rs 55 to Rs 60 and multigrain bread from Rs 60 to Rs 65. Small brown bread was Rs 28, which has now become Rs 30. White bread was Rs 20; now it has become Rs 22."

What is the reason for price increase?

According to the bakers there are various reason of price increase, including:

Fuel prices were raised twice within a week
Transport and delivery charges increased
Cost of LPG used in baking went up
Prices of salt and preservatives rose
Plastic packaging became costlier due to expensive imports and a weak rupee

How are bakers reacting?

According to reports, the price of brown bread has increased from Rs 45 to Rs 50. The manager of a bakery said that, "The plastic powder used to make plastic bags is imported and has become very expensive. We are considering raising the price of bread. This is now unavoidable."

"Transportation costs are a huge burden on resources. Besides, preservatives, even salt, have become very expensive. Plastic carry bags and petroleum products have become prohibitively expensive," said Salahuddin Khan, director of Quality Bakers and a member of the India Bakers Association.

"Earlier, prices used to rise by Rs 2 per loaf, even a hike of Rs 3 would cause concern. Now, prices are rising by Rs 5 at a time," said a customer.