MUMBAI: After milk became costlier by Rs 2 per litre on May 14, bread prices have now risen by Rs 5 per pack. Input costs of imported raw material used for plastic packaging and transportation are contributory factors. The rupee in free fall is adding to import woes.
Modern Bread Leads the Price Hike
On May 16, Modern Bread increased rates by a full five rupees per pack on basic variants, a record high. Britannia and Wibs are expected to follow suit. Grupo Bimbo, which owns the Modern brand, did not respond to TOI's requests for comment.
Impact on Consumers
Raju Phutane, who owns a milk-bread stall in Lane 3 of Lokhandwala Complex, Andheri, said, 'The price of Modern's 400 gm sandwich loaf has risen from Rs 40 to Rs 45, whole wheat from Rs 55 to Rs 60, and multigrain from Rs 60 to Rs 65. The small brown loaf was Rs 28, and it is now Rs 30. The white loaf was Rs 20; it is now Rs 22.' Brown bread has reportedly risen from Rs 45 to Rs 50.
Reasons Behind the Price Increase
Suresh Paswan, manager of Breadkraft Bakery nearby, said, 'Plastic powder used for manufacturing plastic bags is imported and has become very costly. We are considering raising bread prices. It is inevitable.'
Salahuddin Khan, director of Kwality Bakers and member of the India Bakers' Association, said, 'Transportation costs are a big drain on resources. Plus, preservatives - even salt - are much costlier. Plastic carry bags, a petroleum product, have become ridiculously expensive.'
Consumer Reaction
Shafi Ansari, a consumer, said, 'Earlier rates would rise by Rs 2 per loaf - Rs 3 was cause for anxiety. Now, the hikes are in multiples of five rupees at one go.'
