Bread to cost 20% more from next week

Abu Dhabi: Bread prices are set to increase in Dubai and Northern Emirates by 20 per cent from next week, said industry sources, but some cafeterias and bakeries have already hiked prices, citing increase in flour prices.

However, wholesale dealers in Abu Dhabi said they will not increase prices as flour prices have not gone up in the emirate.

"We will not increase the price of bread," said Rajan, Sales Manager of Golden Spike Bakery in Abu Dhabi. But he declined to comment on his company's operation in Dubai and Northern Emirates.

Meanwhile, cafeterias and restaurants in Abu Dhabi said suppliers have increased the price of bread by 10 to 15 per cent recently.

"We don't want to pass the rise on to our customers as bread constitutes only 10 per cent of our costs," said K. Mohammad, who runs a cafeteria in the city.

Supermarket sources in Dubai said prominent industrial bakeries which claim major market share of bread products have given notices to raise the prices by 20 per cent from November 21.

Bakery sources confirmed the new move, but claimed that they are compelled to increase prices because of steep rise in flour prices.

Dispute: Bakeries stop supply to grocers

Residents in Fujairah have been left without bread after a number of bakeries stopped supply to grocery shops over a price dispute with the Fujairah Municipality.

Small bread makers from the East Coast took the drastic measure after the municipality ordered them to rollback bread prices. Recently, bakeries raised the price of a Lebanese bread to Dh3, a 50 fils increase.

- Fuad Ali, Staff Reporter

I am already buying bread at Dh3 from a local supermarket. I am not sure what will happen to me if they increase it by up to 20 per cent more.
Syed
Dubai,UAE
Posted: November 13, 2007, 11:40

UAE is a country for rich people...all the poor people should pack their bags and leave before getting kicked out by the financial crunches! Even a salary of AED 15,000 is not enough to afford a flat and children?s education...what else can I say?
Saad
Sharjah,UAE
Posted: November 13, 2007, 10:25

For the rich it's no matter, for the poor price increases are an additional burden. If the price increases the labour class will have to cut down on at least one meal a day to adjust the cost of living to overcome the increase.
Oosman
Dubai,UAE
Posted: November 13, 2007, 09:52

WHAT??? Last week the price of bread went up in all my neighbourhood supermarkets. The sandwich bread (large) went from Dhs 2 to Dhs 3. The price of a packet of medium Arabic bread went from Dh 1 to Dh 1.50. That was a straight 150% increase. Now they are talking about an increase again... just one week later.
Mohammed
Dubai,UAE
Posted: November 13, 2007, 09:47

There is a rise in everything in the UAE. There is no control over increasing costs day by day. It is high time to move out of this place. I think the government should take some steps to control this kind of artificial inflation, which will prove harmful to the country in near future.
Raj
Dubai,UAE
Posted: November 13, 2007, 09:11

Any increase in the cost of bread will disturb the budget of the laymen. There should be no major price hikes on essential commodities.
Muhammad
Dubai,UAE
Posted: November 13, 2007, 08:36

It is totally unacceptable to increase the price of basic commodities. The government must intervene in this matter, like they did with the hike in rents by putting a reasonable cap.
Ibrahim
Dubai,UAE
Posted: November 13, 2007, 08:27

I am afraid that an unhealthy price hike is about to happen in the UAE. Unless the government comes up with some logical solution, we will see rampant profiteering and further hikes that will eventually cause a backlog in trade activities.
Baiju
Dubai,UAE
Posted: November 13, 2007, 08:12

Bread is a staple food. The additional 25 or 50 fils will surely have a massive effect on the poor and needy.
Evon
Sharjah,UAE
Posted: November 13, 2007, 07:32