The price of the Maltese loaf is to increase by Lm0.02c (2 cents) as from Monday in order to make up for the losses bakers were suffering through the rise in price of paraffin and flour. The increase, which came about through price order which is regulated by the government will be the last of its kind since as from 2005 the baker’s market will be liberalized and allow bakers to operate in a competitive environment.
The Sunday Times revealed that sources close to bakers revealed that the increase will take place on Monday. Bakers are apparently very pleased with the imminent liberalization. This liberalization is expected to stabilize prices according to market expectations while ensuring quality is maintained.
In the recent days, the Bakers Association and the Minister for Competitiveness and Communications Censu Galea were involved in a series of discussions. Bakers demanded the government to issue a written guarantee to refund the additional expense of Lm 0.02c (2 cents) per loaf baked.
Bakers are claiming the cost to produce one loaf of bread has risen by at least Lm 0.02c (2 cents) following the increase in the prices of both flour and paraffin. This has led bakers to threat to raise the price of loaves independently, in spite of the fact that the Maltese loaf price is controlled by the government.
Bakers have insisted that it is becoming harder to continue covering additional costs. Last August, following a rise in the price flour sacks by 56c, bakers negotiated a Lm0.01c (1 cent) increase in the price of the large Maltese traditional loaf. The new price of the loaf was set at Lm0.17c (17cents). With the new increase to be introduced on Monday, prices will reach Lm 0.19c (19 cents).
See also:
"Agreement" reportedly reached with bakers
By MaltaMedia News
Dec 24, 2004, 16:26 CET
Bakers demand government to cover additional loaf costs
By Ruth Davies
Dec 21, 2004, 17:50 CET
Price order on Maltese bread might be dropped
By Ruth Davies
Aug 31, 2004, 14:56 CET
