Government awards bakers increase in controlled bread
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Contact: Chris Satney
Wednesday, 26 November 2008 – The Government of Saint Lucia has responded to a request by the Bakers Association, for a price increase on the three ounce Creole loaf and the large sandwich pan loaf.
The Bakers’ Association argued that the cost of inputs had increased significantly and in some cases, at or about thirty per cent. Consequently the bakers made a request to Government to review and approve a price increase that will be satisfactory to its membership.
“The Ministry of Commerce conducted an analysis on the cost of production of bread, by taking account of recent fluctuations in the price of certain inputs that are associated with the production of bread. Key among them are increases in the price of shortening and the cost of electricity, fuel and labour. The price of wheat flour which is another significant input in the production of bread has increased substantially over the last year resulting in government having to absorb the price increase as a subsidy. It is important to note that at the current price of wheat flour to bakers, government's subsidy per 100 pound bag is $43.42,” said Prime Minister Stephenson King, in address to the nation Tuesday evening.
The last increase granted on the price of controlled bread was done 24 years ago. According to the Prime Minister, having taken into account the recent increases in inputs for the production of bread, government decided to grant a small increase.
“Government has therefore agreed to the following to take effect on December 1st: An increase in the price per ounce of the Creole loaf from eight cents to twelve cents—an increase from 25 cents to 35 cents for a three-ounce Creole loaf; an increase in the price per ounce of a sandwich loaf from eight cents to 15 cents, plus 60 cents per loaf for packaging and slicing; and that the prices controlled bread products will be reviewed at least every two years,” the prime Minister explained.
Meantime Prime Minister King said at the governmental level, all will be done to ensure that there are even more judicious decisions in how the public finances are managed. He also called on citizens to contain their spending habits. |
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