Bakery Crisis: 23 Closures and Rising Costs Threaten Bread Supply

The bakery industry is struggling to find workers, especially since recruitment of Bangladeshi workers is currently restricted. If no action is taken, there could soon be a shortage of bread on your table. This warning comes from Nasser Moraby, president of the Association of Bakery Owners, describing the situation as critical.

Since 2012, the price of bread has been fixed at Rs 2.60. Thirteen years later, the price remains unchanged, despite rising costs.

Electricity bills have doubled, yeast has become more expensive, and wages are increasing, but the retail price of bread has not changed.

Moraby explains that in the past, the government provided a small subsidy of about Re 1.98 per loaf to help cover costs, instead of raising prices.

That subsidy is no longer enough. During a recent meeting with Junior Minister Dhaneshwar Damry at the Finance Ministry, bakers showed that the actual cost to produce a loaf now exceeds Rs 6.35. Maintaining the price at Rs 2.60 would mean the government needs to compensate Rs 3.75 per bread.

However, the minister disputed their figures, claiming their estimates were too high. Moraby states that their goal was simply to present concrete proposals to save the industry, not to debate costs.

Another major issue is labor shortages. Baking is a demanding job, especially with night shifts.

While the government allows hiring foreign workers, some nationalities struggle to keep up with the work pace.

Moraby says Bangladeshi workers are willing to work night shifts without complaints, unlike Nepalese, Malagasy, or Indian workers, who say they did not sign up for such hours.

The ban on recruiting Bangladeshi workers is severely impacting the sector.

Moraby emphasized that they are best suited to the industry’s needs and calls for a revision of the recruitment policy to keep bakeries operating.

Quality concerns is also persisting. Customers complain about the bread, blaming bakers for negligence. However, Moraby blames the quality of flour, which is supplied by the State Trading Corporation (STC).

“We follow the same recipes and measurements, but we can’t choose our flour supplier,” he explained.

In this tense situation, Moraby tried to meet with Trade Minister Michaël Sik Yuen before a new tender for flour was announced.

Though the meeting was scheduled, it never took place. Now that the tender has been launched, Moraby doubts discussions will help, saying, “The damage is already done.”

As talks stall, the bakery sector continues to decline. The Association reports that 23 bakeries have closed this year, with more expected to follow.

Moraby urged urgent dialogue and action, including increasing subsidies and allowing the recruitment of Bangladeshi workers again.

He stressed that bread is a basic necessity, not a luxury. Without support, there may be no bread tomorrow, and nobody wants that.

Source: l’Express